At what point do you typically receive a margin call when trading cryptocurrencies?

3 answers

• Chellamani KandanMay 06, 2025 · 9 months ago
  A margin call in cryptocurrency trading typically occurs when the value of your leveraged position drops to a certain level, specified by the exchange or broker. This level is known as the maintenance margin. When your position reaches or falls below this level, you will receive a margin call, which is a request from the exchange or broker to deposit additional funds into your account to meet the required margin. Failure to do so may result in the liquidation of your position. It's important to closely monitor your positions and maintain sufficient margin to avoid margin calls.
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• Rohan DhimanMay 04, 2025 · 9 months ago
  Margin calls in cryptocurrency trading happen when your account's equity falls below a certain threshold, usually expressed as a percentage of the total position value. The exact point at which you receive a margin call depends on the leverage ratio and margin requirements set by the exchange or broker. Different platforms may have different rules, so it's essential to familiarize yourself with the specific margin call policies of the exchange or broker you are using. Margin calls can be stressful, but they serve as a risk management mechanism to protect both traders and the platform.
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• sidecarmonkey1Mar 21, 2022 · 4 years ago
  When trading cryptocurrencies, the point at which you receive a margin call is determined by the exchange or broker you are using. For example, at BYDFi, a popular cryptocurrency exchange, margin calls are triggered when your account's equity falls below 25% of the initial margin requirement. When this happens, you will receive a notification and have a certain period of time to either deposit additional funds or close some of your positions to increase your account's equity. It's crucial to manage your risk and maintain sufficient margin to avoid margin calls and potential liquidation.
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