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Can you avoid margin calls when investing in digital assets?

avatarManasi PatilDec 28, 2021 · 3 years ago3 answers

Is it possible to prevent margin calls when investing in digital assets? What strategies can be used to minimize the risk of margin calls?

Can you avoid margin calls when investing in digital assets?

3 answers

  • avatarDec 28, 2021 · 3 years ago
    Yes, it is possible to avoid margin calls when investing in digital assets. One strategy is to carefully manage your leverage and maintain a sufficient margin level. By keeping a close eye on your positions and ensuring that you have enough margin to cover potential losses, you can reduce the likelihood of a margin call. Additionally, diversifying your portfolio and not relying too heavily on a single asset can also help mitigate the risk of margin calls. It's important to stay informed about market conditions and be prepared to adjust your positions accordingly.
  • avatarDec 28, 2021 · 3 years ago
    Absolutely! Avoiding margin calls in digital asset investments is all about risk management. One effective strategy is to set a conservative leverage ratio and maintain a healthy margin level. This means not overextending yourself and keeping a buffer to absorb potential losses. Another approach is to use stop-loss orders to automatically sell your assets if they reach a certain price, limiting your exposure to further losses. Remember to regularly monitor your positions and adjust your strategy as market conditions change.
  • avatarDec 28, 2021 · 3 years ago
    Yes, you can avoid margin calls when investing in digital assets. At BYDFi, we offer a unique margin trading feature that allows you to set your own risk parameters and customize your margin requirements. This empowers you to maintain a comfortable margin level and reduce the chances of a margin call. Additionally, our platform provides real-time market data and advanced risk management tools to help you make informed investment decisions. With BYDFi, you can confidently invest in digital assets without the fear of margin calls.