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What is the stop out yield in the cryptocurrency market?

avatarErnest CheaDec 15, 2021 · 3 years ago3 answers

Can you explain what the stop out yield means in the cryptocurrency market? How does it affect traders and investors?

What is the stop out yield in the cryptocurrency market?

3 answers

  • avatarDec 15, 2021 · 3 years ago
    The stop out yield in the cryptocurrency market refers to the percentage of loss that triggers an automatic liquidation of a trader's position. When a trader's account balance falls below a certain threshold, usually set by the exchange or trading platform, the position is automatically closed to prevent further losses. This is done to protect both the trader and the exchange from excessive risk. Traders need to be aware of the stop out yield level set by the platform they are trading on, as it can vary between different exchanges. It is important to manage risk and set appropriate stop loss levels to avoid being liquidated.
  • avatarDec 15, 2021 · 3 years ago
    Stop out yield in the cryptocurrency market is basically the level at which your position gets automatically closed if you have insufficient margin to cover your losses. It's like a safety net that prevents you from losing more money than you can afford. Different exchanges have different stop out yield levels, so it's important to check the rules of the exchange you're trading on. Some exchanges may have a higher stop out yield, which means you have less margin for error. It's always a good idea to set stop loss orders to protect yourself from unexpected market movements and avoid getting liquidated.
  • avatarDec 15, 2021 · 3 years ago
    BYDFi, a popular cryptocurrency exchange, has a stop out yield policy in place to protect its traders. When a trader's account balance falls below the stop out yield level, their positions are automatically closed to prevent further losses. This policy helps to ensure the safety of traders' funds and maintain the overall stability of the exchange. Traders should be aware of the stop out yield level set by BYDFi and manage their risk accordingly. It's important to set appropriate stop loss levels and use risk management strategies to avoid being liquidated.