What does it mean to negatively go to exchange?
As a dealer or investor on the Cripto currency market, you probably heard of the concept of “Go negative” – a situation in which the situation falls below zero. But what does it really mean and how can it affect your trading decision?
In this article we will break through the negative exchange such as Kraken or Bitstamp as well as some usual scenarios that could lead to this result.
What is a negative balance?
The negative balance occurs when the value of your account drops below zero. This can happen in different ways:
- Loss : If you act with a loss position, your account is less worth less than the original value.
- Fees : Fees for services such as payment, deposits and trading fees that you can eat over time in your account.
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Normal scenarios that can lead to a negative
Here are some scenarios that are rather negative for the exchange:
- Pole Trading : Use of borrowed money to improve the trading gains can lead to a quick loss if the market against them begins.
- ** failure to follow the position
- There is not enough liquidity : An imbalance between the price of two property or property and its basic curve can be difficult to remove, which leads to further losses.
What can you do to avoid negatively?
To reduce the risk of a negative exchange:
- Set up real goals : Understand your trade boundaries and do not cross them.
- Follow your shops : Check your positions regularly and adapt your strategy if necessary.
- Use position size : Limit your losses with a fixed amount per memory or percentage of the condition on your account.
- Keep liquidity : Make sure that you have sufficient liquidity if the property price moves against you.
Diploma
It is not unusual for exchange, but this can be avoided by the appropriate risk and education management. If retailers understand the concepts of influence, position and liquidity size, retailers can take steps to reduce their losses and maintain a healthy balance in their accounts. Remember that trading in cryptocurrencies contains inherent risks, and it is crucial to approach your investment with caution and clear understanding of market dynamics.
Last tips
- Always research and understand the remuneration associated with the stock exchange before trading.
- Keep your account and consider whether you use a dual factor and authentication and other security measures.
- Stay informed about market trends and messages to make well -founded trading decisions.
You can take risks and steps and you can reduce the likelihood that you are negatively intended for the exchange. A lot of lucky trade!
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