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What is an example of maintenance margin in the context of cryptocurrency trading?

avatarKAVI SHANTHINI G CSENov 25, 2021 · 3 years ago1 answers

Can you provide a detailed example of how maintenance margin works in the context of cryptocurrency trading?

What is an example of maintenance margin in the context of cryptocurrency trading?
Cryptocurrency
Maintenance Margin
Trading

1 answers

  • avatarNov 25, 2021 · 3 years ago
    BYDFi, 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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