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What are the risks associated with receiving a house call or a margin call in the cryptocurrency market?

avatarBoone HobackDec 15, 2021 · 3 years ago1 answers

In the cryptocurrency market, what are the potential risks that come with receiving a house call or a margin call? How can these calls impact traders and their investments?

What are the risks associated with receiving a house call or a margin call in the cryptocurrency market?

1 answers

  • avatarDec 15, 2021 · 3 years ago
    Receiving a house call or a margin call in the cryptocurrency market can have serious implications for traders. These calls typically occur when the value of a trader's assets falls below a certain threshold, and they are required to either deposit additional funds or sell off some of their assets to cover the losses. The risks associated with these calls include the potential for significant financial loss, as well as the possibility of forced liquidation of assets at unfavorable prices. Traders should be aware of the risks involved in trading on margin and ensure they have a solid risk management strategy in place to mitigate these risks. It is also important to closely monitor market conditions and be prepared to take action if necessary to avoid receiving a house call or a margin call.