> For the complete documentation index, see [llms.txt](https://marginal.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://marginal.gitbook.io/docs/protocol/trading.md).

# Trading

By opening a position, the trader borrows liquidity from the pool which decreases available pool reserves pro rata.

After opening the position, the protocol swaps through reduced reserve pool, converting the borrowed Y tokens into additional X tokens, thereby increasing the trader's desired leverage.

The trader then sends the initial margin in X tokens to the pool to overcollateralize the position, with the majority of the leverage provided by the pool's liquidity providers viathe borrowed reserves.