Definition ∞ Margin Products are financial instruments that allow investors to trade assets using borrowed funds. Participants can amplify their potential gains or losses by leveraging their initial capital. These products are common in traditional finance and have equivalents in the digital asset market. They carry elevated risk due to the use of leverage.
Context ∞ In the cryptocurrency space, Margin Products are a significant offering on many centralized exchanges, attracting traders seeking higher returns. The discussion often involves the regulatory oversight of these products and the risks they pose to retail investors due to market volatility. Future developments may include clearer guidelines for providers and enhanced risk management tools for users of leveraged crypto products.
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