How is IMM defined in the world of digital currencies?
Joseph ShullDec 30, 2021 · 3 years ago3 answers
In the world of digital currencies, what does IMM stand for and how is it defined?
3 answers
- Dec 30, 2021 · 3 years agoIMM stands for Initial Margin Maintenance and it is a term used in the world of digital currencies to refer to the minimum amount of margin that a trader must maintain in their account to keep their positions open. It is defined as a percentage of the total value of the position and is set by the exchange or trading platform. The purpose of IMM is to ensure that traders have enough funds to cover potential losses and to protect the exchange from default risk. By maintaining the required IMM, traders can continue to trade and hold their positions.
- Dec 30, 2021 · 3 years agoIMM, short for Initial Margin Maintenance, is a concept in the digital currency industry that refers to the minimum amount of margin a trader needs to keep in their account to support their open positions. It is usually expressed as a percentage of the total value of the position. The IMM requirement is set by the exchange or trading platform and serves as a risk management measure. By maintaining the required IMM, traders can ensure that they have sufficient funds to cover potential losses and avoid liquidation of their positions.
- Dec 30, 2021 · 3 years agoIMM, which stands for Initial Margin Maintenance, is an important factor in the world of digital currencies. It refers to the minimum amount of margin that traders need to maintain in their accounts to keep their positions open. The IMM requirement is set by the exchange or trading platform and is usually expressed as a percentage of the total value of the position. By maintaining the required IMM, traders can continue to hold their positions and avoid liquidation. For example, at BYDFi, the IMM requirement is set at 5% of the total position value, ensuring that traders have enough margin to support their positions.
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