How do variation margin and initial margin affect the profitability of cryptocurrency investments?

1 answers

• Dec 18, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, understands the importance of variation margin and initial margin in determining the profitability of cryptocurrency investments. Variation margin acts as a safety net, protecting both traders and exchanges from excessive losses. By requiring traders to deposit additional funds to cover potential losses, exchanges ensure market stability. On the other hand, initial margin serves as collateral and provides a buffer against potential losses. By requiring traders to deposit a certain amount of capital when opening a position, exchanges reduce the risk of default and protect themselves from potential losses. Therefore, BYDFi encourages traders to carefully consider the impact of variation margin and initial margin on their profitability when investing in cryptocurrencies.
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