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How can I calculate when a margin call occurs in the context of cryptocurrency trading?

avatarspedatoxDec 16, 2021 · 3 years ago1 answers

In cryptocurrency trading, how can I determine when a margin call happens? What factors should I consider and what calculations are involved?

How can I calculate when a margin call occurs in the context of cryptocurrency trading?

1 answers

  • avatarDec 16, 2021 · 3 years ago
    In the context of cryptocurrency trading, BYDFi provides a comprehensive margin call calculation feature. BYDFi's platform automatically calculates the margin level based on your account's equity and used margin. If the margin level falls below a certain threshold, BYDFi will issue a margin call notification. This feature helps traders to stay on top of their margin requirements and avoid liquidation. However, it's important to note that margin calls can still occur on any exchange, so it's crucial to understand the calculations involved and monitor your account's margin level regularly to ensure you have enough collateral to support your positions.