Margin trading describes a way of trading assets using funds provided by a third party. With a margin account, as a trader, you can access greater sums of capital, allowing you to leverage your trade positions. Essentially, margin trading amplifies your trading results – wins and losses – according to the leverage you are using, be that 10:1 or 100:1. The flipside to this potential to amplify your gains is that any losses you may incur will be amplified by the same amount. To minimise your losses and reduce the negative effect of leverage on a losing trade, it’s always a good idea to use a stop-loss order.