Liquidation usually occurs when your trade has suffered a large loss. Between 50% and 30% of your collateral defined by the Exchange used.
When this happens, the Exchange sells its collateral to cover the loss and close the trade. The trader keeps the remaining balance.
This only happens in leveraged trades where the trader borrows money from the Exchange to trade.
Fernando Bittencourt
npub1l5…99sza
2025-01-13 23:11:19
in reply to nevent1q…syp2
Author Public Key
npub1l56z85xvaplh3033l8h2x9thypamu0d2hyqnxkw0ujuntqm8asaqh99szaPublished at
2025-01-13 23:11:19Event JSON
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"content": "Liquidation usually occurs when your trade has suffered a large loss. Between 50% and 30% of your collateral defined by the Exchange used. \nWhen this happens, the Exchange sells its collateral to cover the loss and close the trade. The trader keeps the remaining balance. \nThis only happens in leveraged trades where the trader borrows money from the Exchange to trade.",
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