Comment by archerabi
3 years ago
Somewhat, look at toomuchtodo's comment. In tradfi, there are humans involved and you might be able to avert liquidation.
3 years ago
Somewhat, look at toomuchtodo's comment. In tradfi, there are humans involved and you might be able to avert liquidation.
To be clear, there are humans involved if the amounts are large enough - if you're playing with stocks and margin in your brokerage account it'll probably liquidate automatically, but even when I got a "margin call" by accident they gave me three days to resolve it before liquidation would happen.
Part of it depends on what the margin is used for - margin for VTX is going to be handled differently than forex margin.