How can I avoid a margin call when trading crypto?

3 answers

• Colon LohmannMay 21, 2021 · 4 years ago
  A margin call is a demand from your broker to deposit more funds into your trading account to maintain the required margin level. It usually happens when the value of your positions drops below a certain threshold. To avoid a margin call when trading crypto, it's important to set a stop-loss order for each trade to limit potential losses. Additionally, you should only trade with funds you can afford to lose and avoid using excessive leverage. Proper risk management and staying informed about market trends can also help you avoid margin calls.
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• Sigurd HellesvikSep 03, 2024 · a year ago
  Margin calls can be stressful, but there are steps you can take to minimize the risk. Firstly, make sure you have a clear understanding of how margin trading works and the risks involved. It's important to have a well-defined trading plan and stick to it. Secondly, diversify your portfolio by investing in different cryptocurrencies to spread the risk. Thirdly, keep an eye on the market and set realistic profit targets. Finally, consider using a reputable exchange with a good track record to minimize the chances of unexpected margin calls.
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• TuwaseFeb 10, 2025 · 6 months ago
  When it comes to margin trading, BYDFi is a popular choice among crypto traders. With BYDFi, you can enjoy a user-friendly interface, advanced trading tools, and competitive fees. To avoid a margin call when trading crypto on BYDFi, it's important to carefully manage your leverage and monitor your positions closely. BYDFi also provides educational resources and customer support to help traders navigate the complexities of margin trading. Remember, always do your own research and make informed decisions when trading cryptocurrencies.
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