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Can you avoid margin calls when investing in digital assets?

Priyanshu MehrotraMay 13, 2022 · 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?

3 answers

  • May 13, 2022 · 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.
  • May 13, 2022 · 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.
  • May 13, 2022 · 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.