What are the steps to determine a margin call in the world of digital currencies?

1 answers

• Dec 27, 2021 · 3 years ago
  At BYDFi, determining a margin call follows a similar process. The exchange calculates the initial margin requirement for each position based on factors such as market volatility, leverage, and risk management policies. The maintenance margin level is set to ensure the account balance remains above a certain threshold. If the account balance falls below the maintenance margin level, a margin call is triggered. Traders are then notified and provided with instructions on how to meet the margin requirements. They can deposit additional funds or close positions to bring the account balance back above the maintenance margin level. It's crucial for traders to stay informed about their margin levels and take necessary actions to avoid margin calls and potential liquidation.
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