Description Of Margin Call Configuration

RoyalQ Trading Margin Setting

Depending on the percentage drops, this configuration reveals how much depth you’ll be purchasing.

Consider the following scenario: your capital value is $100, with a $10 first buy-in, and you’re utilizing four margin calls. This indicates your initial call will be one time at a market depth of 3.5 percent. That is, if the price of the coin you’re selling falls by 3.5 percent, the Robot will purchase an additional one time at the $10 “First Buy-In Amount.” ($10 multiplied by one equals $10)

We have 4 percent and two times in the second call on the image above. This implies that if the currency lowers another 4%, the Robot will buy a couple more at the price of your “first buy-in amount.”

That’ll be $10 multiplied by two to equal $20. The same is true for the remaining margin calls.

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Details on how to set up a royal Q margin call

As collateral or reserve funds, the trader must put down a proportion of their own money to trade on margin. Margin calls are issued in margin trading when the market value of the trader’s capital falls below the amount needed by the broker or exchange. This results in the investor being compelled to provide extra money to fulfill the broker or exchange’s maintenance (replenishment) requirement. Margin trading with cryptocurrency enables traders to trade cryptocurrency on an exchange based on a borrowed amount of money. We’ll go through setting up margin calls in the RoyalQ bot in this blog article.

What is a margin call?

Margin calls are triggered in cryptocurrency margin trading when the cryptocurrency’s value goes below a pre-specified minimum value. If the cryptocurrency’s value falls below this threshold, the exchange will request that more money be deposited. Many brokers and exchanges permit partial margin trading to offer investors some protection against the danger of a margin call.

What exactly does margin trading imply for cryptocurrency traders?

Until recently, cryptocurrency exchanges or traders were required to put down the total value as collateral. A margin is just a modest sum of money used to prevent being subjected to a margin call. For investors, putting down as much cash as is required to meet the margin call requirement would be very dangerous due to the lack of liquidity in the bitcoin marketplace. Since they are investing on margin, traders can retain more collateral on hand and lower the danger of margin calls if the value of the cryptocurrency market falls in value. Margin calls and cryptocurrency trading are two topics that have come up recently.

In a typical margin call situation, the trader is required to “draw” more cash from their brokerage account (wallet) to fulfill the order’s balance requirement. All required is that the investor maintains the same total quantity of money in their trading account throughout the transaction. If the value of the investment grows, or if it increases at all, the trader will not be required to withdraw extra cash from their trading account to pay margin obligations. When configuring the position call configuration settings, the number of times you have set up the position will be shown, and you will be able to specify the position call drop and the position call multiple.

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