Can you provide a practical illustration of maintenance margin in the cryptocurrency market?

1 answers

• Nov 25, 2021 · 3 years ago
  Let me break it down for you. Maintenance margin is the minimum amount of money you need to have in your account to keep your trades open in the cryptocurrency market. It's like a security deposit that ensures you can cover potential losses. When your account balance approaches the maintenance margin level, the exchange will send you a margin call, asking you to deposit more funds. If you don't comply, they may liquidate your positions. So, it's important to manage your margin levels carefully and always have enough funds to meet the maintenance margin requirements. Remember, it's all about risk management and protecting your positions from getting liquidated.
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