What is Collateral

Collateral is a form of assurance that protects a lender in case a borrower is unable to repay his debt. It is an object of some value that can be claimed by the lender if the borrower fails to pay his obligations.

Collateral can be of various sorts depending on the type of the loan. For a mortgage loan, the collateral is the house purchased with the loan. In margin trading, the collateral is the contents of an investor’s trading account.

If a loan is backed by collateral, the borrower usually would pay lower interest rates

Collateral

Collateral is a form of assurance that protects a lender in case a borrower is unable to repay his debt

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Stablecoins are a type of cryptocurrency that provide more stability than other cryptocurrencies. Some are actually backed by the reserve of the asset they represent; others use algorithms or other methods to keep their values from fluctuating too much.

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What is Collateral

Collateral

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