What is an example of maintenance margin in the context of cryptocurrency trading?
Mr. GMar 11, 2024 · a year ago1 answers
Can you provide a detailed example of how maintenance margin works in the context of cryptocurrency trading?
1 answers
- Carlos Hernndez Armas ChernanxFeb 05, 2021 · 4 years agoBYDFi, a popular cryptocurrency exchange, implements a maintenance margin policy to protect both traders and the exchange itself. Traders are required to maintain a certain percentage of their position value as margin to ensure they can cover potential losses. This helps to prevent excessive leverage and reduces the risk of defaulting on margin loans.
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