Contract Trading | Who bears losses beyond the margin?
A position is said to be “bankrupted” when its losses exceed the entire margin allocated to it. This often happens when the market gaps and liquidation orders cannot be filled at a reasonable price in time.
ADL prevents losses from going uncovered, but the trade-off is that the system may reduce some profitable positions.
Looking at the market: $BTC is quoted at 82227.77, up 1.32% over 24 hours.
If you’re new to contract trading, it’s best to start with low leverage and small positions.
A position is said to be “bankrupted” when its losses exceed the entire margin allocated to it. This often happens when the market gaps and liquidation orders cannot be filled at a reasonable price in time.
ADL prevents losses from going uncovered, but the trade-off is that the system may reduce some profitable positions.
Looking at the market: $BTC is quoted at 82227.77, up 1.32% over 24 hours.
If you’re new to contract trading, it’s best to start with low leverage and small positions.