Margin trading is a method of trading assets using funds provided by a third party. Margin trading lets you amplify your gains from market swings, allowing you to execute more complex, active trading strategies. In a nutshell, margin trading means using borrowed funds from a lender to increase your final return and betting on either an asset’s price going up or going down. As you can probably imagine, because of the risk involved in trading cryptocurrencies some people may choose not to put all of their funds into an exchange. Also, traders could simply not have enough funds as they would like to dedicate into actual trading.