The position hasn’t changed, so why did the liquidation price quietly move?
First, the basics: The entry price, leverage, position size, and applicable maintenance margin rate all affect the liquidation price of an isolated-margin position.
Here’s why: Highly leveraged positions have very little initial margin. After deducting the maintenance margin, they can absorb less unrealized loss, so the liquidation price is close to the entry price.
The coin mentioned in this article: $BTC . Current price: 82977.96, 24h: +0.44%.
Beginners are better off practicing with low leverage and small amounts.
#BTC
This is not investment advice. You are responsible for any profits or losses.
First, the basics: The entry price, leverage, position size, and applicable maintenance margin rate all affect the liquidation price of an isolated-margin position.
Here’s why: Highly leveraged positions have very little initial margin. After deducting the maintenance margin, they can absorb less unrealized loss, so the liquidation price is close to the entry price.
The coin mentioned in this article: $BTC . Current price: 82977.96, 24h: +0.44%.
Beginners are better off practicing with low leverage and small amounts.
#BTC
This is not investment advice. You are responsible for any profits or losses.