Trading Liquidation

What is digital currency liquidation?

How to calculate the refining price?

Liquidation stages

  • Insurance Fund: A fund maintained by an exchange office to allow traders to make a full profit and ensure that the bankrupt trader does not incur unnecessary losses.
  • “Social losses” system: This method distributes the losses of bankrupt positions among all profitable traders.
  • Automatic Lever Liquidation (ADL): With ADL, the exchange selects traders’ market positions based on profit and leverage and automatically closes their positions to cover other positions.

Three tips to prevent liquidation

Use Stop Loss

Use less leverage

Monitor the margin ratio

In conclusion

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