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What are the consequences of not maintaining the required margin in cryptocurrency trading?

avatarosamhDec 17, 2021 · 3 years ago3 answers

What happens if I fail to maintain the required margin in cryptocurrency trading?

What are the consequences of not maintaining the required margin in cryptocurrency trading?

3 answers

  • avatarDec 17, 2021 · 3 years ago
    If you don't maintain the required margin in cryptocurrency trading, you may face liquidation. This means that your positions will be automatically closed by the exchange to cover the losses. It's important to monitor your margin levels and add funds if necessary to avoid liquidation.
  • avatarDec 17, 2021 · 3 years ago
    Not maintaining the required margin in cryptocurrency trading can lead to significant losses. When your margin falls below the required level, the exchange may issue a margin call, which requires you to add more funds to your account. If you fail to do so, your positions may be liquidated, resulting in the loss of your investment.
  • avatarDec 17, 2021 · 3 years ago
    In the case of BYDFi, if you fail to maintain the required margin, the exchange will automatically close your positions to prevent further losses. It's crucial to manage your margin carefully and ensure you have enough funds to cover potential losses.