Trading using borrowed tokens is the performance of leveraged transactions for the exchange of tokenized assets using borrowed tokens.

Leverage allows a trader to make transactions in amounts several times greater than his capital. Moreover, trading on FREE2EX occurs using XUSD and XEUR tokens, which represent USD and EUR, respectively. When you transfer funds (USD or EUR) from your eWallet to your Leverage account, they will be converted into the corresponding token at a 1:1 rate (1 USD = 1XUSD, 1EUR = 1 XEUR).

The FREE2EX platform features various tokenized assets, namely tokenized CFDs. 

A CFD (contract for difference) is an agreement between a seller and a buyer to transfer the difference between the current value of an asset (at the time the position is opened) and the value of the asset at the end of the contract (at the time the position is closed). A special feature of CFDs is the lack of delivery of the asset itself, i.e. the seller is not obligated to own the asset, and the buyer does not have the right to demand delivery of the asset.

If the difference turns out to be positive, the buyer will receive this difference from the seller; if it is negative, the buyer pays this difference to the seller.

CFDs allow you to make money not only on an increase in the price of the underlying asset, but also on a decrease. 

Tokenized CFDs are tokens whose value corresponds to the price of a CFD for a certain underlying asset and repeats its value. Thus, 1 token = 1 CFD on the underlying asset.

For example, a tokenized CFD for Brent oil replicates the value of this instrument and allows the client to profit from changes in the price of this asset. If the price of Brent oil CFD increases, the value of the token will also increase. It follows that tokenized CFDs enable the trader to earn the same amount as when trading traditional CFDs.