Digital Currency

Add as a preferred source on Google

Crypto Exchanges Can Close Leveraged Trades When Margin Falls Short

Long positions are designed to benefit from price rises, while short positions benefit from declines.

Updated 1 min read
A passerby checks a smartphone on a damp sidewalk in Seoul's Yeouido district (AI-generated image / EconoTimes)
A passerby checks a smartphone on a damp sidewalk in Seoul's Yeouido district (AI-generated image / EconoTimes)

An exchange can force-close a leveraged trade when its margin no longer meets requirements. Long positions are positioned to benefit from price increases; short positions are positioned to benefit from declines.

Related articles

View all