What happens when a position loses more than its margin—who covers the difference?
If a liquidation order is filled at a price worse than the bankruptcy price, the insurance fund covers the loss exceeding the margin.
Here’s the key point: Slippage can be significant during extreme market volatility. Leave more room for highly leveraged positions, and don’t stubbornly hold on when the price is near the liquidation price.
Related coin: $BTC Current price: 82261.9 (24h +1.19%).
Don’t use borrowed money to trade futures. Losses can happen faster than you expect.
#BTC
If a liquidation order is filled at a price worse than the bankruptcy price, the insurance fund covers the loss exceeding the margin.
Here’s the key point: Slippage can be significant during extreme market volatility. Leave more room for highly leveraged positions, and don’t stubbornly hold on when the price is near the liquidation price.
Related coin: $BTC Current price: 82261.9 (24h +1.19%).
Don’t use borrowed money to trade futures. Losses can happen faster than you expect.
#BTC