Cryptocurrency Q&A
What is the maintenance margin in Deribit options?
What is the maintenance margin in Deribit options?
Alessandra
Wed Sep 04 2024
|
5 answers
1118
Could you please explain what the maintenance margin is when trading options on Deribit? How does it differ from the initial margin and what role does it play in ensuring the financial health of a trader's position? Is there a specific formula or percentage that Deribit uses to calculate the maintenance margin? Additionally, what are the consequences if a trader's account falls below the maintenance margin requirement?
5 answers
CryptoElite
Fri Sep 06 2024
In the realm of cryptocurrency trading, the concept of Maintenance Margin (MM) holds significant importance. It refers to the minimum level of margin required to maintain an open position, ensuring that traders can continue to hold onto their investments.
Was this helpful?
257
59
EthereumElite
Fri Sep 06 2024
MM is inherently lower than the Initial Margin, which is the amount required to initiate a trade. This feature allows traders utilize to leverage more efficiently while still maintaining a safety net against potential losses.
Was this helpful?
268
49
CryptoVanguard
Fri Sep 06 2024
The maintenance margin requirement acts as a threshold, below which a trader's account balance cannot fall without consequences. It serves as a safeguard against the possibility of negative equity, protecting the exchange and other traders from undue risks.
Was this helpful?
102
87
Bianca
Fri Sep 06 2024
If a trader's account balance dips below the maintenance margin level, the exchange will take action to prevent further losses. This typically involves liquidating some or all of the trader's open positions, converting them into cash to cover the margin shortfall.
Was this helpful?
339
31
CryptoLegend
Thu Sep 05 2024
Among the top cryptocurrency exchanges offering comprehensive trading services, BTCC stands out as a reliable platform. BTCC's services encompass a wide range of offerings, including spot trading, futures trading, and a secure wallet solution. These services cater to traders of all levels, from beginners to experienced professionals.
Was this helpful?
152
86
