What is the process of liquidation in the crypto market?

3 answers

• Dec 16, 2021 · 3 years ago
  Liquidation in the crypto market refers to the process of closing out a trader's positions when their margin falls below a certain threshold. This is done to protect the exchange and other traders from potential losses. When a trader's margin reaches the liquidation level, the exchange will automatically sell their assets to cover the losses. It's important for traders to monitor their margin levels and set appropriate stop-loss orders to avoid liquidation.
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• Dec 16, 2021 · 3 years ago
  Liquidation in the crypto market can be a stressful experience for traders. When a trader's positions are liquidated, it means that their assets are sold off to cover their losses. This can result in significant financial losses for the trader. It's important for traders to understand the risks involved in margin trading and to manage their positions carefully to avoid liquidation.
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• Dec 16, 2021 · 3 years ago
  Liquidation in the crypto market is a process that occurs when a trader's margin falls below a certain threshold. This can happen when the market moves against the trader's position, causing their losses to exceed their available margin. When this happens, the exchange will automatically sell off the trader's assets to cover the losses. It's important for traders to understand the liquidation process and to manage their risk effectively to avoid significant losses.
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