Crypto Trivia 📚 Contract Leverage
In isolated margin mode, opening a 10x long position could trigger liquidation before the price drops 10%, because maintenance margin is also deducted.
Leverage equals the position’s notional value divided by the margin invested: with 1,000 USDT in margin, opening a 10x position means a position worth 10,000 USDT.
I didn’t understand this back then, and the tuition I paid could have bought me bubble tea for months.
Market data at the end: $BTC current price 81,750.01, 24h -2.12%.
#BTC
In isolated margin mode, opening a 10x long position could trigger liquidation before the price drops 10%, because maintenance margin is also deducted.
Leverage equals the position’s notional value divided by the margin invested: with 1,000 USDT in margin, opening a 10x position means a position worth 10,000 USDT.
I didn’t understand this back then, and the tuition I paid could have bought me bubble tea for months.
Market data at the end: $BTC current price 81,750.01, 24h -2.12%.
#BTC