- A trading exchange is a marketplace where financial products are bought and sold by interested parties.
- Brokers facilitate the sale of financial products between interested seller and buyers, and sometimes work as the buyers and sellers themselves, they take a fee as the “connector”
- Margin trading is when you borrow money in order to buy more of a financial product than you could have without the loan.
- The difference between Bid and Offer (or Bid and Ask): The Bid price is the maximum price a buyer is willing to spend to obtain the item in question, the offer or ask is the minimum price a seller is willing to sell the item for.
- The leverage is connected to margin trading, as the buyer is able to “leverage” their position buy buying more on a loan then they could have on their own.
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What is a trading exchange?
a marketplace where assets like crypto, forex, and futures can be easily bought and sold. -
What do brokers do?
they’re an intermediary that organizes the trade of assets between investors and exchanges, for a fee -
What is margin trading?
investors borrowing funds from a broker/3rd party to buy an asset with a greater sum of capital to leverage their positions. the margin is the difference between the total value of securities (in an investor’s account) vs the loan amount from the broker. -
What is the difference between Bid and Offer (or Bid and Ask)?
the Bid is the price the buyer is willing to pay and the Ask is the lowest the seller will accept -
What is the leverage?
the use of borrowed funds - debt - to multiply their buying power, and amplifying their returns on investment.
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1.A trading exchange is a online brokerage/marketplace that organizes the sale of securities, commodities and other financial assets. Gives sellers and buyers an equal playing field to trade assets among one another fairly!
2.The role of a broker is to act as an intermediary between the buyer (investor/trader) and a seller on the market. Exchanges only accept orders from individuals or firms who are members of the exchange and brokers allow for individuals or firms to invest into the market, brokers are compensated through means such as commissions or fees.
3.Margin Trading is referring to the practice that borrows funds from brokers in order to trade financial assets. Essentially lending money to leverage trades.
4.What is the difference between Bid and Offer (or Bid and Ask)
A bid is an ask to buy the asset an offer is price suggestion for what the owner of the asset wants to give it up for.
5.Leverage is simply when a position size has increased in favourable upside gains at the risk of increasing the downside risk through lending.
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- What is a trading exchange?
A marketplace for peer-to-peer exchanges of financial assets for money.
- What do brokers do?
Brokers match buyers and sellers with each other to facilitate a transaction and charge commission ib it for making the connection.
- What is margin trading?
Margin trading is making a trade with funds borrowed from an exchange or, more typically in cryptocurrency, other users who earn interest on providing those funds. It requires the trader to commit a percentage of the total value of the trade and this initial amount is known as the margin. The rest of the value of the trade is made up by the borrowed funds.
The concept of the margin is tied very closely to the concept of leverage and margin trading can also be known as leverage trading.
- What is the difference between Bid and Offer (or Bid and Ask)
The bid is the price a buyer is willing to pay and the offer/ask is the price a seller is willing to sell for.
- What is the leverage?
Leverage is the amount that the position (or margin) was increased by. Cryptocurrency exchanges frequently use 3x, 5x, 10x etc to describe it, though it’s commonly written as a ratio (3:1, 5:1, 10:1) in stocks. The simplest way to think of this is as the multiplying effect it has on profit or loss in percentage terms.
For example, in spot there is no multiplier (a ratio of 1:1) and the profit/loss will reflect the market movements:
| Spot (Trader amount) | Leverage | Borrowed |
|---|---|---|
| 1000 | N/A (1) | N/A |
| Value change | Balance | Change | Profit / Loss % |
|---|---|---|---|
| 10.00% | 1100 | 100 | 10.00% |
| -10.00% | 900 | -100 | -10.00% |
| 20.00% | 1200 | 200 | 20.00% |
| -20.00% | 800 | -200 | -20.00% |
With a leverage of 10x, the percentage impact of market movements will be multiplied by 10:
| Margin (trader amount) | Leverage | Borrowed Amount | Total Trade |
|---|---|---|---|
| 1000 | 10 | 9000 | 10000 |
| Value change | Balance | After Repayment | Profit / Loss % |
|---|---|---|---|
| 10.00% | 11000 | 2000 | 100.00% |
| -10.00% | 9000 | 0 | -100.00% |
| 20.00% | 12000 | 3000 | 200.00% |
| -20.00% | 8000 | -1000 | -200.00% |
Or here by 5x:
| Margin (trader amount) | Leverage | Borrowed Amount | Total Trade |
|---|---|---|---|
| 1000 | 5 | 4000 | 5000 |
| Value change | Balance | After Repayment | Profit / Loss % |
|---|---|---|---|
| 10.00% | 5500 | 1500 | 50.00% |
| -10.00% | 4500 | 500 | -50.00% |
| 20.00% | 6000 | 2000 | 100.00% |
| -20.00% | 4000 | 0 | -100.00% |
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Thank you for the example on Leveraging.
That made it much easier to understand and remember. 
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What is a trading exchange?
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What do brokers do?
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What is margin trading?
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What is the difference between Bid and Offer (or Bid and Ask)?
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What is the leverage?
1.A trading exchange is a marketplace where there’s a community that in a fairly, orderly and organised way, trade varies goods, commodities, assets, derivatives and other financial instruments.
2.A broker is a person or a firm that mediates between and investor and a security exchange.
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Margin trading uses third party funds to be able to trade on a leverage. Investors buy more than what the can afford and the brokers would lend the money to buy shares and keep it as collateral.
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The bid price represents the maximum price that a buyer is willing to pay for a share of stock or other security. The ask price represents the minimum price that a seller is willing to take for that same security. The last price is usually the last transaction price.
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Leverage is the use of borrowed funds to increase an investor’s trading position beyond what would be available from their cash balance alone. It helps to make profit when the market doesn’t move much.
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Excellent answers, It’s easy to understand. Please keep them like that 
Carlos Z.
Thank you - the example calculation on leverage clarifies so much! 
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What is a trading exchange?
An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange. -
What do brokers do?
The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange.
As well as executing client orders, brokers may provide investors with research, investment plans and market intelligence. They may also cross-sell other financial products and services their brokerage firm offers, such as access to a private client offering that provides tailored solutions to high net worth clients. -
What is margin trading?
Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker. -
What is the difference between Bid and Offer (or Bid and Ask)
A Bid is the price selected by a buyer to buy a stock, while the Offer is the price at which the seller is offering to sell the stock. -
What is the leverage?
Leverage refers to the use of debt (borrowed funds) to amplify returns from an investment or project.
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Credit: Investopedia
- What is a trading exchange?
A marketplace where people can trade commodities, derivative and other financial instruments. It facilitates fair trading, orderly trading and efficient price dissemination across its commodities.
- What do brokers do?
A broker is an intermediary between an investor and a securities exchange. Individual traders and investors need the broker to invest since the exchange will only accept orders from its members, of whom a broker is one. The broker is compensated through either commissions, fees, or being paid through the exchange itself
- What is margin trading?
Margin is the money borrowed from a brokerage firm to purchase an investment. It is the difference between the total value of securities held in an investor’s account and the loan amount from the broker. Buying on margin is the act of borrowing money to buy securities. The practice includes buying an asset where the buyer pays only a percentage of the asset’s value and borrows the rest from the bank or broker. The broker acts as a lender and the securities in the investor’s account act as collateral.
- What is the difference between Bid and Offer (or Bid and Ask)
The term bid and ask (also known as bid and offer) refers to a two-way price quotation that indicates the best potential price at which a security can be sold and bought at a given point in time. The bid price represents the maximum price that a buyer is willing to pay for a share of stock or other security. The ask price represents the minimum price that a seller is willing to take for that same security. A trade or transaction occurs after the buyer and seller agree on a price for the security which is no higher than the bid and no lower than the ask.
The difference between bid and ask prices, or the spread, is a key indicator of the liquidity of the asset. In general, the smaller the spread, the better the liquidity
- What is the leverage?
Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital to increase the potential return of an investment.
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- A trading exchange acts as a market for buyer and seller to transact. Stock exchanges like NYSE and Nasdaq are exchanges for stocks. Coinbase and Binance are examples of exchanges for certain crypto assets.
- A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange.
- Margin is using money borrowed from a brokerage firm to purchase an investment. Margin is also used to refer to the loan amount.
- The “bid” is the price a buyer is willing to pay. The “ask” is the price a seller is willing to accept. The difference is referred to as the “spread”.
- Leverage is the amount of borrowed capital one uses to buy an asset. Can also be used to refer to the amount of debt used to finance assets.
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A trading exchange is a platform where buyers and sellers meet to trade assets such as stocks or coins.
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Brokers interfere as intermediaries between investors/traders and an exchange.
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Margin trading is a method of trading assets using funds provided by a third party. Traders can raise more capital to leverage their positions.
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Difference between bid and offer - Buyer proposes to buy an asset a certain given price (bid) and seller offers to sell his asset at an Ask price (offer).
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Leverage trading is a technique that enables a trader to multiply his initial amount to a much larger exposure.
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A trading exchange is a marketplace where buyers and sellers met to exchange assets
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Brokers are intermediaries that buy and sell products or investment vehicles for third parties.
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Margin trading is borrowing money to buy or sell, trading with debt.
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Bid is the highest price a buyer will purchase an asset at and the ask is the lowest price a seller is willing to sell an asset.
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Leverage is using debt to invest.
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- What is a trading exchange?
Training exange is the place where investments and securities are listed on the marketplace so that cryptocurrencies, can be bought and sold.
2.A broker is an invidividual person who is buying and selling between investor and exange.
Brokers charged the clients fees for every trade they made for client.
3.Margin means "to use money borrowed from a broker to purchase the assets.
4.The bid refers to the highest price a buyer will pay for a security.
5.Leverage is an investment strategy of using borrowed money to increase the potential retutn of investment.
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- A trading exchange is an online marketplace were the sale of securities, commodities and other financial assets are traded. It gives both the sellers and buyers an equal playing field to trade.
- A broker can be an individual or a firm/ company which act as an intermediary.
- Margin trading is the ability to enter into a positions larger than your account balance.
- The bid price is the highest price the buyer is willing to pay and the offer/ ask price refers to the lowest price the seller is willing to except.
- Leverage is using borrowed money to invest.
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- What is a trading exchange?
- A place where assets are bought and sold.
- What do brokers do?
- Intermediaries who manage the buying and selling of certain assets
- What is margin trading?
- Borrowing funds to trade on platforms to have greater amounts of money.
- What is the difference between Bid and Offer (or Bid and Ask)
- Bid = the price at which a buyer pays. Offer = the price at which a seller sells
- What is the leverage?
- Borrowing capital to increase positions on trading platforms in hopes of an increase on returned investment.
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Trading exchange - marketplace where securities, commodities, derivatives and other financial instruments are traded.
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Brokers buy and sell goods for others (intermediary between an investor and a securities exchange).
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Margin trading is a method of trading assets using funds borrowed from a third party (broker).
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A Bid is the price selected by a buyer to buy a stock, while the Offer is the price at which the seller is offering to sell the stock.
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Leverage - using borrowed capital for an investment (expanding asset base), expecting the profits made to be greater than the interest payable.
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- What is a trading exchange?
its an online market where you can buy and sell assets. - What do brokers do?
is a person who act as an intermediary between a buyer and a seller - What is margin trading?
is a method of trading assets using funds from a third party - What is the difference between Bid and Offer (or Bid and Ask)
a bid a price selected by a buyer to buy and offer is the price that a seller is offering to sell - What is the leverage?
when you borrow money for an investment strategy using some financial instruments to increase the return.
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Trading exchange is a market place for buying and selling crypto currencies, securities, commodities, derivatives, etc…
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A broker organises and executes financial transactions on behalf of other parties.
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Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset.
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The difference between the bid and offer is in the actor buying and selling. The bid comes from the individual / organisation buying, whereas the offer is price at which the seller is selling.
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The leverage is the borrowed funds that one uses to increase their trading position beyond what would be available through their cash (spot) balance alone.
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