You may already be familiar with exchange trading that is available on most crypto exchanges, including CoinMetro.

When an exchange order is filled, you exchange a specified quantity of one asset with a quantity of another asset, and your wallet balances for the two assets update immediately.

Margin trading works differently. You place an order to buy or sell a particular asset against another as with exchange trading, but with two main differences: 

1. Leverage can be used (up to 5:1 in our case) to amplify potential gains and losses; 

2. When the order is filled your wallet balances do not update yet. 

Instead an open position is created which has a floating profit or loss (P/L) that automatically updates as market prices change. When the position is closed at your discretion, the floating P/L is converted to a settlement currency (eg EUR or BTC) and saved to your wallet for that currency.

The main differences between the two types of trading can be summarised as follows:

In summary, margin trading provides the most flexibility if your main goal is to generate profits with added leverage. If you instead want to purchase cryptos for long term holding and/or for trading without the risk to reward ratio, leverage implies, then the different dedicated exchange sections and trading would be more suitable for you. 

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