Liquidation
TradingThe exchange force-closes a leveraged position when margin is exhausted.
Example
At 10x, roughly a 9.5% adverse move can liquidate a position.
Common misconceptions
- That the price must hit zero before you lose the margin
The exchange force-closes a leveraged position when margin is exhausted.
At 10x, roughly a 9.5% adverse move can liquidate a position.