In leveraged crypto trading, collateral acts as the margin that supports an open position and absorbs losses as the market moves. A larger collateral base increases the distance between the entry price and the liquidation price, giving the position more…
A margin call is a warning from your exchange that your account equity has fallen below the maintenance margin threshold. A liquidation is what happens when you do not act. The exchange force-closes the position and takes the margin. The…
Every exchange sets a minimum equity requirement for keeping a leveraged position open. If your account balance drops below that level, the exchange closes the trade. That level is the maintenance margin, and it sits at the core of how…