What is the risk of receiving a margin call in cryptocurrency trading?

3 answers

• KrutzelpuntzOct 03, 2020 · 5 years ago
  A margin call in cryptocurrency trading occurs when the value of a trader's positions falls below a certain threshold set by the exchange. This triggers a demand for additional funds to be deposited into the trading account to cover potential losses. The risk of receiving a margin call is that if the trader fails to meet the margin requirements, the exchange may liquidate their positions to recover the borrowed funds. This can result in significant losses for the trader.
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• SUJAN S T CSEJun 19, 2025 · 5 months ago
  Receiving a margin call can be a stressful experience for cryptocurrency traders. It often indicates that their positions are not performing well and that they need to take immediate action to avoid further losses. Traders who receive a margin call may need to deposit additional funds into their account or close some of their positions to meet the margin requirements. Failing to do so can lead to forced liquidation and potential financial losses.
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• Anuar AbdrakhmanovSep 12, 2021 · 4 years ago
  When it comes to margin calls in cryptocurrency trading, it's important to understand the risks involved. Exchanges like BYDFi have specific margin requirements that traders must meet to avoid margin calls. If a trader's positions fall below the required margin, they may receive a margin call and be required to deposit additional funds. However, it's worth noting that margin calls can also present opportunities for traders to reassess their positions and make strategic decisions to minimize losses or even profit from market fluctuations.
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