>"FTX lent to traders so they could make big bets on crypto with just a small initial outlay, known as trading on margin. If the traders made losses, FTX would automatically sell the cash or margin they had put up, thereby protecting the exchange."
Can someone say what is meant by "sell the cash" here? I'm guessing this is not literal. Cash is an asset, what wouldn't they just deposit the cash in their account?
>"FTX lent to traders so they could make big bets on crypto with just a small initial outlay, known as trading on margin. If the traders made losses, FTX would automatically sell the cash or margin they had put up, thereby protecting the exchange."
Can someone say what is meant by "sell the cash" here? I'm guessing this is not literal. Cash is an asset, what wouldn't they just deposit the cash in their account?