How does a futures margin call affect the price of cryptocurrencies?

1 answers

• lin ganJul 19, 2024 · a year ago
  At BYDFi, we understand the impact of futures margin calls on the price of cryptocurrencies. When a margin call occurs, it can create a sense of panic among traders, leading to increased selling pressure in the market. This can cause the price of cryptocurrencies to decline. However, it's important to remember that margin calls are a normal part of the futures trading process and are designed to protect traders and the overall market from excessive risk. While margin calls can lead to short-term price fluctuations, they also help maintain market stability in the long run.
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