Empire cover image

Market Contagion | stETH fallout | Celsius & 3AC Liquidity Crises | Santi's Investment Strategy

Empire

00:00

How Do Margin Calls Work?

"Imean ill, i'll give my thoughts in three hours. In a second," he says. "Can you explain to folks how margin calls work? Yes, sur so i say that i have am so that i have one eith ah and i want to borrow against that,. Because i want to have, you know, go borrwgains tat and buy more eath." He adds: "If the value of that collateral, which is a thousand to day, ever drops below 800 on the 600 that you borrowed, two things can happen": 1) You get liquidated; 2) The market maker gets taken over by other people who are trying to make money

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app