What is the difference between a house call and a margin call in the context of cryptocurrency trading?

2 answers

• mechricsonJul 20, 2021 · 5 years ago
  In cryptocurrency trading, a house call is like a warning sign that your account is running low on funds. It's like your account saying, 'Hey, buddy, you need to deposit more money or risk getting liquidated!' On the other hand, a margin call is more serious. It's like your account screaming, 'Deposit more money now or we'll sell your positions to cover the losses!' So, in summary, a house call is a gentle nudge to top up your account, while a margin call is a loud alarm demanding immediate action to avoid potential losses.
  529

  265
• HML786Oct 18, 2020 · 5 years ago
  In cryptocurrency trading, a house call and a margin call are two different things. A house call is when the exchange asks you to deposit more funds because your account has fallen below the maintenance margin. It's like the exchange saying, 'Hey, we need more money to keep your positions safe!' On the other hand, a margin call is a demand for more funds because your account value has dropped below the required margin level. It's like the exchange shouting, 'Deposit more money now or we'll sell your positions!' So, the key difference is that a house call is triggered by the account falling below the maintenance margin, while a margin call is triggered by the account value dropping below the required margin level. Both calls require additional funds, but a margin call is more urgent and can result in position liquidation if not met.
  843

  281