How does margin work in the context of cryptocurrency trading?

1 answers

• Jan 04, 2022 · 3 years ago
  At BYDFi, margin trading works by allowing users to borrow funds from the platform to increase their trading positions. Users can choose the leverage they want to use, and the platform will provide the necessary funds. However, it's important to note that margin trading involves a higher level of risk compared to regular trading. The use of leverage amplifies both profits and losses, so it's crucial to carefully manage your positions and set stop-loss orders to limit potential losses. It's also important to maintain a sufficient collateral ratio to avoid liquidation. BYDFi provides educational resources and risk management tools to help users make informed trading decisions when using margin trading.
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