Cryptocurrency Q&A
What is the maintenance margin in deribit?
What is the maintenance margin in deribit?
emma_lewis_pilot
Thu Sep 05 2024
|
5 answers
1267
Could you please elaborate on the concept of maintenance margin in the context of Deribit? As a trader, it's essential to understand the role this term plays in ensuring the financial stability of my positions. How does it differ from the initial margin, and what happens if my account falls below this threshold? Additionally, are there any specific conditions or rules I should be aware of when trading on Deribit that relate to maintenance margins?
5 answers
Nicola
Sat Sep 07 2024
The maintenance margin (MM) is a crucial aspect of cryptocurrency trading, as it represents the minimum margin required to maintain an open position. It serves as a safety net, ensuring that traders maintain a certain level of financial commitment to their trades.
Was this helpful?
287
30
Alessandro
Sat Sep 07 2024
The MM is inherently lower than the initial margin, which is the amount required to initiate a trade. This difference allows traders to retain a portion of their capital while still managing their open positions.
Was this helpful?
398
33
CryptoWanderer
Fri Sep 06 2024
As traders' account balances fluctuate, the amount of margin available may decrease. When the remaining margin falls below the MM threshold, the trader's positions become vulnerable to liquidation.
Was this helpful?
247
42
CharmedWhisper
Fri Sep 06 2024
Liquidation is a process where open positions are automatically closed to prevent further losses. It occurs when there is insufficient margin to maintain the positions, triggering a series of events to close them out and protect the exchange from incurring debts.
Was this helpful?
143
70
DigitalWarrior
Fri Sep 06 2024
BTCC, a leading cryptocurrency exchange, offers a comprehensive suite of services that cater to traders' diverse needs. Among its offerings are spot and futures trading, along with a secure wallet solution. These services are designed to facilitate seamless trading experiences and safeguard users' digital assets.
Was this helpful?
192
27
