How Effective Are AI Risk Engines in Margin Trading Platforms?

Margin trading is the only feature in the crypto exchange platforms that allows users to place their positions more than the assets they own. This serves as the best option for traders who have a minimum asset to trade.

But here’s the main thing you need to consider. The profit margin trading gives is immense. At the same time, the risks it carries are also higher. If the asset’s price begins to drop, a margin call is sent to the users. And if they ignore it, then their trading position gets into a liquidation state. It means that they’ll lose their collateral(initial margin).

In such cases, AI risk engines act as a lifesaver that safeguards users’ assets and protects the integrity of the exchange. Integrating the bots with specified risk metrics helps avoid major failures in the margin trading platforms.

The major revenue streams of margin trading platforms are interest on the borrowed amount. And the second one is the liquidation fee when the user fails to maintain the margin level of their trading position. Besides thesem there are many additional revenue sources in the platform.

And that’s the reason every entrepreneur is going after adopting a margin trading clone script. It’s the ready-made margin trading platform that helps startups to customize and launch their own platform supporting margin trading and other features. This helps them to attract beginners, intermediate traders, and pro traders.

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