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What is the difference between intraday margin and initial margin in the context of cryptocurrency trading?

avatarAbabale MirajiDec 26, 2021 · 3 years ago1 answers

Can you explain the distinction between intraday margin and initial margin when it comes to trading cryptocurrencies?

What is the difference between intraday margin and initial margin in the context of cryptocurrency trading?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    Intraday margin and initial margin are two terms that are commonly used in cryptocurrency trading. Intraday margin refers to the minimum amount of funds that a trader must have in their account to open and maintain a position during the day. It is a temporary margin requirement that allows traders to take advantage of short-term price movements. On the other hand, initial margin is the amount of funds that a trader must deposit in their account when opening a position. It acts as a form of collateral to cover potential losses. While intraday margin is specific to day trading, initial margin applies to all types of positions. Both margins are important for risk management and maintaining the financial stability of the trading platform.