How does a margin call work in cryptocurrency day trading?

3 answers

• Amelie KnapeApr 06, 2022 · 3 years ago
  A margin call in cryptocurrency day trading occurs when the value of your leveraged position drops to a certain level, triggering a request from the exchange to deposit additional funds to cover potential losses. If you fail to meet the margin call, the exchange may liquidate your position to recover the borrowed funds. This can result in significant losses if the market moves against you. It's important to carefully manage your margin and have a plan in place to avoid margin calls.
  487

  244
• Bartek WlodarczykSep 27, 2023 · 2 years ago
  When you receive a margin call in cryptocurrency day trading, it means that your leveraged position is at risk of being liquidated. This happens when the value of your position falls below a certain threshold set by the exchange. To avoid a margin call, you can either deposit additional funds to increase your margin or close some of your positions to reduce your exposure. It's crucial to monitor your positions closely to prevent margin calls and minimize potential losses.
  476

  159
• Hung DuaNov 16, 2020 · 5 years ago
  In cryptocurrency day trading, a margin call is a notification from the exchange that your leveraged position is in danger of being liquidated. If you receive a margin call, it means that the value of your position has dropped below a certain level, and you need to take action to avoid further losses. This can include depositing additional funds or closing some of your positions. Margin calls are a risk in leveraged trading, and it's important to understand the potential consequences and manage your risk accordingly.
  522

  131