Understanding the risk of disposal in margins: Cryptomena guide
However, this high -risk activity also comes in the world of finance trading in margins with a number of hidden pitfalls, including liquidation risks. Trading with margins and providing guidelines on how to alleviate these risks.
** What is disposal?
The liquidation concerns the process by which the creditor or investor sells an asset at a discounted price to obtain his losses. The cryptocurrency decreases below the client’s account balance, which provokes sales and the result is a loss.
Types of disposal
There are several types of disposal that may occur when trading with margins:
- Initial disposal of margin :
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- Liquidation due to market volatility :
Risks associated with disposal in marketing margins
Although disposal can be beneficial for investors trying to recover their losses, they also come with significant risks:
- Capital loss :
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Risks specific to cryptocurrency
Licvidation risks as a result of the following factors:
1.
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Relieving the risk of disposal
Margins trading, investors should:
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2.
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Monitor the market conditions : regularly monitor market conditions and adjust your business strategy accordingly.
4.
Conclusion
While liquidation in margin trading may potential pitfalls of liquidation and taking steps to alleviate these risks can minimize their exposure to the volatility of the market and make more informed investment decisions.
Reneeing of responsibility
Investment advice.
