Source: https://mochatrade.com/learn/glossary/margin-trading

# Margin trading
URL: https://mochatrade.com/learn/glossary/margin-trading
Last modified: 2026-10-17

Margin trading is taking a position larger than your deposit, the margin. A US broker lends you cash at interest; on a margined contract nothing is borrowed, the margin is marked against the position every second, and the holding cost is [funding, not interest](https://mochatrade.com/support/mochatrade-trading-fees-and-funding-rates-explained). [One margined trade on a practice venue](https://mochatrade.com/learn/start-here/nvidia-trade-walkthrough); [margin on Mochatrade](https://mochatrade.com/support/how-leverage-and-margin-work-on-mochatrade).

## Related terms

- Leverage in trading: https://mochatrade.com/learn/glossary/leverage-in-trading
- Margin interest: https://mochatrade.com/learn/glossary/margin-interest
- Buying power: https://mochatrade.com/learn/glossary/buying-power
- Liquidation / forced square-off: https://mochatrade.com/learn/glossary/liquidation-forced-square-off
- Mark price: https://mochatrade.com/learn/glossary/mark-price
- Round-trip trading cost: https://mochatrade.com/learn/glossary/round-trip-trading-cost

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.