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Lumifer comments on Actually existing prediction markets? - Less Wrong Discussion
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What you are describing is called "netting".
Margin trading is when the broker actually lends you money and the securities you buy with it are the collateral for the loan.
Thank you - Edited. I was convinced that "margin trading" was the lingo that people used at Intrade. Either users of that site had their own non-standard terminology, or my memory is faulty. Either way, I hope it makes more sense now.