What are the consequences of not meeting the minimum margin requirement when trading digital currencies?

1 answers

• Gaby MonrealAug 03, 2022 · 4 years ago
  At BYDFi, we take margin trading seriously. If you fail to meet the minimum margin requirement when trading digital currencies on our platform, we will automatically close your positions to protect both you and us from potential losses. This is known as liquidation. Liquidation can be a harsh consequence of not meeting the minimum margin requirement. It means that your positions will be forcibly closed, and any remaining funds will be used to cover the losses. This can result in significant financial losses for you. To avoid liquidation, it is crucial to maintain sufficient margin in your trading account. This ensures that you have enough collateral to cover potential losses and allows you to continue trading without interruption. Remember, margin trading can be a powerful tool, but it also comes with risks. Always trade responsibly and make sure to meet the minimum margin requirement to avoid any unwanted consequences.
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