> For the complete documentation index, see [llms.txt](https://docs.concordia.systems/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.concordia.systems/use-cases/margin-trading.md).
# Margin trading
Concordia's collateral protocol presents application developers an easy path to implement margin trading. Using Concordia, one can open trades with borrowed funds, and settle them physically across blockchain networks.
Bilbo deposits 100 USDC into his Concordia margin account. He wants to use this deposit to trade on leverage. An on-chain margin-trading program is connected to Concordia, and can perform a **composite operation** which includes a withdrawal, exchange, and deposit all in one transaction. Bilbo executes this program to perform a 5x leveraged swap of USDC for ETH on a connected DEX.
* Concordia allows Bilbo to borrow 400 USDC
* All 500 USDC are withdrawn from Bilbo’s account
* The program performs an exchange for \~$500 worth of ETH
* $500 ETH are deposited into Bilbo’s account, and the transaction ends
At the conclusion of this 5x trade, Bilbo is in debt 400 USDC, and owns $500 worth of ETH. His debt is secured by the ETH he bought. Importantly, he performed this 5x trade on an initial deposit of 100 USDC. "Closing" this open position requires paying back the 400 USDC he borrowed. This can be done with a second composite operation, in the reverse: withdraw the ETH, exchange it for USDC, deposit the USDC, and repay the debt.
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