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margin

A collection of 5 issues

Isolated Margin: A Complete Guide for Crypto Traders

What Is Isolated Margin? Isolated margin is a risk-control feature offered by many cryptocurrency and derivatives exchanges, allowing traders to allocate a specific portion of their account balance to one individual position. By ring-fencing this collateral, any potential loss is confined to the chosen amount, protecting the rest of your

Initial Margin Explained: A Trader’s Guide to Safer Leverage

Introduction to Initial Margin Initial margin is the upfront collateral a trader must deposit before opening a leveraged position in futures, options, or margin accounts. Set by exchanges or brokers, this safeguard protects the market against default. Understanding how initial margin functions is essential for anyone looking to trade aggressively

Understanding Haircut (Margin): Definition, Importance & Calculation

Introduction In capital markets, the term “haircut” often appears alongside margin, collateral, and leverage. Whether you pledge shares for a brokerage loan or a bank finances a repo trade, understanding the haircut (margin) helps you measure liquidity needs, borrowing capacity, and potential exposure to sudden price swings. What Is a

Cryptocurrency Liquidation Cascades Explained: Margin Call Triggers, Forced Selling Dynamics, and Risk Management Strategies for Traders

Introduction: Why Liquidation Cascades Matter Few events feel as chaotic for crypto traders as a sudden liquidation cascade. One moment, Bitcoin or Ether is trading calmly; the next, prices plunge hundreds of dollars in minutes as forced sell orders flood the books. Understanding how and why these chain reactions occur

Cryptocurrency Short Selling Mechanics: Borrowing Workflows, Margin Requirements, and Robust Risk Controls

Introduction: Why Short Selling Matters in Crypto Markets Short selling has long been a staple of traditional finance, enabling traders to express bearish views, hedge portfolios, and improve market efficiency. As digital assets mature, the same strategies migrate to the cryptocurrency ecosystem. However, the mechanics of shorting Bitcoin, Ether, or