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What happens if I don't meet the minimum margin requirement when trading digital assets?

avatarIiz DewiDec 26, 2021 · 3 years ago3 answers

What are the consequences if I fail to meet the minimum margin requirement while trading digital assets? Will my position be automatically closed? Will I be charged any penalties or fees?

What happens if I don't meet the minimum margin requirement when trading digital assets?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    If you don't meet the minimum margin requirement when trading digital assets, there can be several consequences. In most cases, your position will be automatically closed by the exchange to prevent further losses. This is known as a margin call. Additionally, you may be charged penalties or fees for not meeting the requirement. It's important to carefully monitor your margin levels and ensure you have enough funds to meet the minimum requirement.
  • avatarDec 26, 2021 · 3 years ago
    When you fail to meet the minimum margin requirement while trading digital assets, the exchange will typically issue a margin call. This means that your position will be liquidated to cover the potential losses. It's crucial to maintain sufficient margin in your account to avoid this situation. Always keep an eye on your margin levels and make sure you have enough funds to meet the requirement.
  • avatarDec 26, 2021 · 3 years ago
    Not meeting the minimum margin requirement when trading digital assets can have serious consequences. The exchange may automatically close your position, resulting in potential losses. Additionally, you may be subject to penalties or fees for not meeting the requirement. It's essential to understand the margin requirements of the exchange you're trading on and ensure you have enough funds to meet them. By doing so, you can avoid unnecessary risks and potential financial setbacks.