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What is a margin call?

Updated over a week ago

Understanding Margin Calls on Cryptobots.io

At Cryptobots.io, we want to ensure that our users have a smooth and successful trading experience. That's why we have implemented a margin call system to help you manage your account's equity and avoid liquidation.

What is a Margin Call?

A margin call is a notification that your account's equity has fallen below the required maintenance margin. This means that the value of your account has decreased and you may be at risk of losing your position if the market continues to move against you.

How Does Cryptobots.io Handle Margin Calls?

For our users trading derivatives strategies, we will send you an email notification and dashboard alerts if we detect the price approaching your liquidation threshold. This provides you with sufficient time to decide whether to add margin to your position or not, which will always be your decision.

It is important to note that margin calls are not a form of punishment or a way for us to force you to add more funds to your account. Instead, it is a warning and an opportunity for you to take action and manage your account's equity.

What Should You Do When You Receive a Margin Call?

If you receive a margin call, it is important to act quickly and make a decision on how to manage your position.

It is important to carefully consider your options and make a decision that aligns with your trading strategy and risk management plan.

In Conclusion

Margin calls are an important aspect of trading on Cryptobots.io. They serve as a warning and an opportunity for you to manage your account's equity and avoid liquidation. Remember, it is always your decision on how to handle a margin call, and our team is here to support you every step of the way.




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