What is the meaning of 'call' in the context of cryptocurrency trading?

3 answers

• Dec 16, 2021 · 3 years ago
  In cryptocurrency trading, the term 'call' refers to a specific type of order that allows traders to buy an asset at a predetermined price. It is commonly used in margin trading, where traders can borrow funds to increase their trading positions. When a trader places a 'call' order, they are essentially betting that the price of the asset will rise. If the price does increase, the trader can sell the asset at a profit. However, if the price decreases, the trader may incur losses. It's important to note that 'call' orders come with certain risks and should be used with caution.
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• Dec 16, 2021 · 3 years ago
  When it comes to cryptocurrency trading, 'call' is a term used to describe an option contract that gives the holder the right, but not the obligation, to buy a specific asset at a predetermined price within a certain timeframe. This type of contract is commonly used in derivatives trading, where traders can speculate on the future price movements of cryptocurrencies. By purchasing a 'call' option, traders can potentially profit from an increase in the price of the underlying asset. However, if the price does not reach the predetermined level within the specified timeframe, the option may expire worthless. It's important for traders to understand the risks and potential rewards associated with 'call' options before engaging in this type of trading strategy.
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• Dec 16, 2021 · 3 years ago
  In the context of cryptocurrency trading, a 'call' refers to a margin call. A margin call occurs when a trader's account falls below the required margin level, and they are required to deposit additional funds or close out positions to meet the margin requirements. This is done to protect both the trader and the exchange from potential losses. Margin trading can be a high-risk strategy, as it amplifies both potential gains and losses. Traders should carefully monitor their margin levels and be prepared to respond to margin calls to avoid liquidation of their positions.
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