What are the factors that affect the calculation of free margin in the crypto market?

1 answers

• Dec 26, 2021 · 3 years ago
  In the crypto market, the calculation of free margin is influenced by various factors. Leverage is a significant factor that affects the margin requirement and, consequently, the free margin. Higher leverage allows for a smaller margin requirement, increasing the available free margin. Volatility is another crucial factor. Higher volatility can lead to larger price fluctuations, requiring a larger margin to account for potential losses. Position size also plays a role. Larger positions require a larger margin, reducing the available free margin. Lastly, the account equity affects the calculation. Higher equity results in a larger free margin, while lower equity limits the available margin for trading. By considering these factors, traders can optimize their free margin and effectively manage their positions in the crypto market.
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