Can you provide a practical illustration of maintenance margin in the cryptocurrency market?

Could you please explain in detail what maintenance margin is and how it works in the context of the cryptocurrency market? I would like to understand how it affects traders and their positions.

1 answers
- Let me break it down for you. Maintenance margin is the minimum amount of money you need to have in your account to keep your trades open in the cryptocurrency market. It's like a security deposit that ensures you can cover potential losses. When your account balance approaches the maintenance margin level, the exchange will send you a margin call, asking you to deposit more funds. If you don't comply, they may liquidate your positions. So, it's important to manage your margin levels carefully and always have enough funds to meet the maintenance margin requirements. Remember, it's all about risk management and protecting your positions from getting liquidated.
Mar 16, 2022 · 3 years ago
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