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Liquidity and Leverage of Cryptocurrency in Financial Risk Management of Indodax Exchange Daming, Sudirman; Widyawati, Widyawati
YUME : Journal of Management Vol 7, No 3 (2024)
Publisher : Pascasarjana STIE Amkop Makassar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37531/yum.v7i3.8370

Abstract

Cryptocurrency trading presents unique financial risks, particularly concerning liquidity and leverage, which significantly impact exchange stability and investor decision-making. This study analyzes the role of liquidity and leverage in the financial risk management strategies of Indodax, Indonesia's largest cryptocurrency exchange. Liquidity is a crucial factor affecting price stability and market efficiency, while leverage amplifies both potential gains and losses, increasing exposure to volatility. Using a quantitative approach, this research evaluates the correlation between liquidity, leverage, and risk management practices at Indodax. The findings indicate that higher liquidity reduces price manipulation risks and enhances market efficiency, whereas excessive leverage increases vulnerability to liquidation and systemic risks. The study highlights the importance of robust risk management strategies, including margin policies and liquidity reserves, to ensure market stability. These insights contribute to a better understanding of financial risk mitigation in cryptocurrency exchanges and provide recommendations for improving regulatory frameworks and investor protections. Keywords: Liquidity, Leverage, Cryptocurrency, Financial Risk Management, Indodax Exchange
A Qualitative Investigation into Financial Strategy, Performance, Investment Decision-Making Daming, Sudirman; Widyawati, Widyawati
Economics and Digital Business Review Vol. 5 No. 2 (2024)
Publisher : STIE Amkop Makassar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37531/ecotal.v5i2.1769

Abstract

This study aims to explore key aspects of financial management, including financial strategy, performance evaluation, and investment decision-making, through a qualitative investigation and comprehensive literature review. The research method involved synthesizing existing literature from diverse sources to identify trends, challenges, and opportunities in financial management practices. The findings highlight the multifaceted nature of financial strategy formulation, emphasizing the importance of aligning strategies with organizational objectives and integrating sustainability principles. Moreover, the study underscores the significance of performance evaluation in assessing organizational effectiveness, with frameworks like the Balanced Scorecard providing valuable tools for comprehensive performance assessment. In investment decision-making, the research emphasizes the need for robust processes incorporating quantitative analysis, qualitative assessments, and risk management techniques to optimize returns and mitigate risks effectively. Key findings include the importance of capital budgeting, project evaluation, and portfolio management in investment decisions and the growing influence of technological advancements on decision-making processes. Overall, this study contributes to a deeper understanding of financial management practices and highlights avenues for future research in sustainability integration and technological implications.