What are the consequences of not meeting the maintenance requirement in cryptocurrency trading?

What happens if I fail to meet the maintenance requirement in cryptocurrency trading?

3 answers
- If 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.
Mar 23, 2022 · 3 years ago
- Not 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.
Mar 23, 2022 · 3 years ago
- Failing 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.
Mar 23, 2022 · 3 years ago
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