These are the minimum amounts of capital or collateral that traders must deposit to open or maintain a leveraged trading position. They serve as a buffer against potential losses, protecting the trading platform from excessive risk. Variations in these requirements can significantly impact trading strategies and market liquidity.
Context
Leverage requirements are a critical component of derivative trading in digital assets, often adjusted by exchanges based on market volatility. Current discussions frequently center on the adequacy of these requirements during periods of extreme price swings and their role in preventing cascading liquidations. Understanding these parameters is vital for assessing trading risks.
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