BRVX Glossary · Margin trading · Updated September 24, 2026
Margin trading means opening a position larger than your own capital, with the difference covered by borrowed funds or by a leveraged contract. The trader's own money — the margin — works as a deposit that absorbs losses, and the position is closed if that deposit runs too low.
The formula
Exposure Own margin × Leverage
Your margin is the deposit; the position is larger than the money you put in.
How it works
- Deposit Margin
- Multiply Leverage
- Trade Full position
Try it on XAUT/USDT
Live XAUT/USDT tariff. Simplified estimate: opening fee included, closing fee and funding not.
Position size 4,000 USDT
- A 1% move changes your margin by
- ± 40 USDT (20%)
- Move against you to liquidation
- 3.84%
- Opening fee
- 3.2 USDT
Leverage works both ways: a small move against you can lose you the whole margin.
Two ways to trade on margin
With a stock broker, margin trading means borrowing: the broker lends cash to buy more shares, charges interest on the loan and holds the shares as security. In the US, Regulation T lets a margin account borrow up to half of the purchase price.
With futures and perpetual futures there is no loan. The contract itself is leveraged: you post margin as collateral and the contract gives exposure to a larger notional. There is no interest on a loan, but perpetuals carry a funding payment instead.
Margin account vs perpetual contract
| Margin account at a broker | Perpetual futures | |
|---|---|---|
| Where extra exposure comes from | A cash loan | The contract's leverage |
| Ongoing cost | Interest on the loan | Funding |
| Short selling | Needs borrowed shares | Same as going long |
| When losses run deep | Margin call, then forced sale | Liquidation |
Margin trading on BRVX
BRVX is a perpetual futures venue, so margin trading there works the contract way: you post margin in USDC, BTC, ETH, USDT, SOL or BNB, choose a leverage between 5x and the market's limit, and the position is quoted in USDT. There is no loan and no interest; funding is charged every hour on most markets while the position is open.
Questions about Margin trading
Is margin trading the same as leverage?
Almost. Leverage is the multiplier; margin trading is the practice of using it. A position traded on margin is a leveraged position.
Can you lose more than your margin?
On a venue with automatic liquidation the position is closed before the margin runs out, but in fast markets the close can happen at a worse price than planned. With a broker margin loan, losses can exceed the deposit.
Do I pay interest when margin trading perpetuals?
No. There is no loan, so no interest. Perpetuals charge funding instead, which on BRVX settles every hour on most markets.
Margin trading: next steps on BRVX
Margin trading on XAUT/USDT: pick 5x to 100x, 50x by default, margin in 6 tokens. At 100x, a 1% move is 100% of margin.
Read next: Cross margin vs isolated margin, Margin call and Leverage.
Leverage works both ways: a small move against you can lose you the whole margin.
Open XAUT/USDT in the app
Open appLeverage raises both gains and losses. Start with a size you are comfortable with. Not available to US persons.