How does the margin call calculation work in the context of digital currencies?

1 answers

• Apr 30, 2022 · 3 years ago
  When it comes to the margin call calculation in the context of digital currencies, BYDFi has implemented a robust system to ensure the safety of traders' funds. The margin call calculation takes into account various factors, including the initial margin requirement, the leverage used, and the current market conditions. If a trader's margin level falls below a certain threshold, BYDFi will issue a margin call, prompting the trader to either deposit more funds or close some of their positions. This helps to prevent excessive losses and protect both the trader and the exchange. It's important for traders to understand the margin call calculation and closely monitor their margin levels to avoid potential liquidation of their positions.
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