How does margin call work in cryptocurrency trading?

3 answers

• prabhu ayyappanJul 05, 2025 · 2 months ago
  A margin call in cryptocurrency trading occurs when the value of your margin account falls below a certain threshold set by the exchange. This happens when the losses on your leveraged positions exceed the available funds in your account. When a margin call is triggered, the exchange will require you to either deposit additional funds or close some of your positions to bring your account back to the required margin level. Failure to meet the margin call may result in the exchange liquidating your positions to cover the losses. It's important to closely monitor your margin account and manage your risk to avoid margin calls.
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• Nur MohdAug 23, 2022 · 3 years ago
  Margin call in cryptocurrency trading is a mechanism used by exchanges to protect themselves and traders from excessive losses. When the value of your leveraged positions drops below a certain level, the exchange will issue a margin call and ask you to either deposit more funds or reduce your positions. This is to ensure that you have enough equity to cover potential losses. Margin calls can be stressful, but they are an important risk management tool in the volatile cryptocurrency market.
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• haarwaschmittelDec 05, 2021 · 4 years ago
  Margin call works in a similar way across different cryptocurrency exchanges. When the value of your leveraged positions falls below the required margin level, the exchange will issue a margin call. It's important to understand the specific margin requirements and rules of the exchange you are trading on. Different exchanges may have different margin call thresholds and liquidation processes. Make sure to familiarize yourself with the margin call policies of the exchange you are using to avoid any surprises.
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