Bitcoin margin trading is when investors use borrowed money to trade Bitcoin and try to maximize their profits. This is an example of how it works. Let’s assume that you want to buy Bitcoin for $1000, but you only have $100 available in your account. You will opt for margin trading with 100x leverage. Next, you wake up the following morning and you see that the price of Bitcoin has jumped by 50%. Your investment is now worth $1500 (in a scenario where 1 BTC is worth $1000 at the time of the purchase). You can then close your trade and liquidate your position to pay back the money you borrowed ($900) and still make a profit of $600. Of course, this is the best-case scenario. In reality, you risk losing everything you invested, including the 100$.