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How can I calculate the liquidation price on BitMEX?

avatarIsmail SulaimanDec 16, 2021 · 3 years ago3 answers

I'm new to BitMEX and I want to know how to calculate the liquidation price for my positions. Can someone explain the process to me?

How can I calculate the liquidation price on BitMEX?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    To calculate the liquidation price on BitMEX, you need to consider the leverage and the maintenance margin. The formula is: Liquidation Price = Entry Price - (Entry Price * Leverage / Maintenance Margin). This will give you the price at which your position will be liquidated if the market moves against you. Make sure to double-check your calculations before entering any trades.
  • avatarDec 16, 2021 · 3 years ago
    Calculating the liquidation price on BitMEX is crucial for risk management. It helps you determine the price level at which your position will be automatically closed to prevent further losses. By using the formula provided by BitMEX, you can calculate this price and set appropriate stop-loss orders to protect your capital. Remember to always consider the leverage and maintenance margin in your calculations.
  • avatarDec 16, 2021 · 3 years ago
    When it comes to calculating the liquidation price on BitMEX, it's important to understand the risks involved. BitMEX offers high leverage trading, which can amplify both profits and losses. If you're not familiar with the formula or unsure about your calculations, it's best to seek guidance from experienced traders or use online calculators specifically designed for BitMEX liquidation price calculations. Remember, risk management is key in the volatile world of cryptocurrency trading.