> For the complete documentation index, see [llms.txt](https://docs.verified.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.verified.network/reference/verified-applications/margin-trading.md).

# Margin trading

Margin trading allows users to trade by staking collateral to cover margin money, financing cost and potential losses on trades. Users can margin trade by putting a fraction of value of the trade as margin money. Profit and Loss settlement is daily and traders lose money if prices go down and vice versa.

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