Most people think liquidation prices are easy to understand, but this is where it’s easy to get it wrong:
In isolated margin mode, manually adding margin moves the liquidation price of a long position down and that of a short position up, farther from the current price.
Highly leveraged positions have less initial margin to begin with. After maintenance margin is deducted, they can withstand even less unrealized loss, so the liquidation price is closer to the entry price.
Check the liquidation price as soon as you open a position, then compare it with the usual price fluctuations. If it’s too close, reduce your position size.
Today’s market: $BTC at 75900.01, 24h -0.49%.
#BTC
In isolated margin mode, manually adding margin moves the liquidation price of a long position down and that of a short position up, farther from the current price.
Highly leveraged positions have less initial margin to begin with. After maintenance margin is deducted, they can withstand even less unrealized loss, so the liquidation price is closer to the entry price.
Check the liquidation price as soon as you open a position, then compare it with the usual price fluctuations. If it’s too close, reduce your position size.
Today’s market: $BTC at 75900.01, 24h -0.49%.
#BTC