Margin Trading

Surfpro Decentralized Finance (DeFi) also allows crypto margin trading. As we all know, traditional margin trading involves the usage of borrowed funds from brokers to trade financial assets, which in turn form the collateral for the loan from the brokers. In DeFi, there is a large-scale margin trading framework as well, where traders can enjoy zero price impact trades, low swap fees, and margin trade cryptos several times the value directly from their wallet.

In simpler terms, traders use their funds as an assurance, multiply their funds by several multiples and leverage these funds to make larger investments or trades. In return, traders need to shell out interest fees and the transaction cost involved. In a case where the trade goes in an unfavorable direction where the trader's assets aren't able to recover the borrowed loan, the Surfpro DeFi protocol liquidates the position when it's about to reach a certain liquidation ratio.