common-close-0
BYDFi
Trade wherever you are!

What are the consequences of not meeting the maintenance requirement in cryptocurrency trading?

avatarAbdur RaseemDec 16, 2021 · 3 years ago3 answers

What happens if I fail to meet the maintenance requirement in cryptocurrency trading?

What are the consequences of not meeting the maintenance requirement in cryptocurrency trading?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    If you fail to meet the maintenance requirement in cryptocurrency trading, you may face liquidation of your positions. This means that your assets will be sold off to cover the losses incurred. It is important to maintain the required margin to avoid this situation.
  • avatarDec 16, 2021 · 3 years ago
    Not meeting the maintenance requirement can lead to forced liquidation, where your positions are automatically closed by the exchange. This can result in significant losses, as the exchange may sell your assets at unfavorable prices. It is crucial to monitor your margin levels and ensure you have sufficient funds to meet the maintenance requirement.
  • avatarDec 16, 2021 · 3 years ago
    Failing to meet the maintenance requirement in cryptocurrency trading can have serious consequences. For example, on BYDFi, if your account falls below the maintenance margin, your positions may be liquidated. This is done to protect the exchange and other traders from potential losses. It is important to understand and adhere to the maintenance requirement to avoid such situations.