What are the risks of margin pledging?
Here are some risks of margin pledging:
- Market Volatility: If the value of your pledged assets falls significantly, you might face a margin call, requiring you to deposit additional funds or risk having your positions automatically liquidated.
- Inability to sell: Your pledged assets become less readily available for sale until they are un-pledged.
- Increased Risk: Margin trading inherently amplifies both potential gains and losses.
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