I would like to learn about the economics of Margin trading, need for the lending platform ( like Bitfinex & Poloniex ) and liquidation.
First the working of all this plus I have some specific questions.
- 1. Is lending platform really important for Margin trading? How are they related?
- 2. In crypto world, if a margin is given for say BTC example 3x of your BTC. How do exchanges handle liquidation?
- 3. Is there a time restriction anywhere? to give back the BTC?
- 4. Difference between Margin and leverage trading?
Even if you can point me to some good articles that summarize the working that would be great.