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What are the risks associated with using limited margin in cryptocurrency IRA accounts?

avatarEva RodrigoDec 26, 2021 · 3 years ago1 answers

What are the potential risks that come with utilizing limited margin in cryptocurrency IRA accounts?

What are the risks associated with using limited margin in cryptocurrency IRA accounts?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    At BYDFi, we understand the risks associated with using limited margin in cryptocurrency IRA accounts. While margin trading can offer potential opportunities for higher returns, it also comes with increased risks. One of the main risks is the potential for margin calls. If the value of your assets falls below a certain threshold, you may be required to deposit additional funds to maintain your position. Failure to do so could result in the liquidation of your assets. Additionally, margin trading amplifies both gains and losses, so it's important to carefully assess your risk tolerance and only engage in margin trading if you fully understand the potential risks involved.