Knowledge that must be learned in the cryptocurrency circle:
What is a margin call? Let me tell you with a simple example!
For example, if you spend 50,000 US dollars to buy 1 Bitcoin, this is called a normal transaction. But if you want to play with leverage, such as using 10 times leverage, it means that you only need to pay 5,000 US dollars, and the remaining 45,000 US dollars will be lent to you by the platform.
If Bitcoin rises to 55,000 US dollars, you can sell it. After deducting the money you pay back to the platform, you will make a net profit of 10,000, doubling your income!
But if Bitcoin falls to 45,000 US dollars, the remaining value is only enough to pay back the money the platform lent you. At this time, the platform will force you to sell Bitcoin, and your 5,000 US dollars will be completely lost. This is a margin call.
Can't hold on? Don't forget that the platform's money doesn't wait for anyone. If it falls even worse, you may even owe money! Although leveraged trading has high returns, it is more risky! $BTC $ETH
Intraday observation: BOME, QKC, RIF, BCH... BTC, BNB
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