What are the consequences of not meeting the maintenance requirement in cryptocurrency trading?
Alex CJan 04, 2022 · 3 years ago3 answers
What happens if I fail to meet the maintenance requirement in cryptocurrency trading?
3 answers
- Jan 04, 2022 · 3 years agoIf you fail to meet the maintenance requirement in cryptocurrency trading, you may face liquidation of your positions. This means that your assets will be sold off to cover the losses incurred. It is important to maintain the required margin to avoid this situation.
- Jan 04, 2022 · 3 years agoNot meeting the maintenance requirement can lead to forced liquidation, where your positions are automatically closed by the exchange. This can result in significant losses, as the exchange may sell your assets at unfavorable prices. It is crucial to monitor your margin levels and ensure you have sufficient funds to meet the maintenance requirement.
- Jan 04, 2022 · 3 years agoFailing to meet the maintenance requirement in cryptocurrency trading can have serious consequences. For example, on BYDFi, if your account falls below the maintenance margin, your positions may be liquidated. This is done to protect the exchange and other traders from potential losses. It is important to understand and adhere to the maintenance requirement to avoid such situations.
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