what is liquidation price in crypto

Last Updated on March 22, 2024 by Paganoto

Liquidations in crypto are common but what does it mean?

Liquidations in crypto are common but what does it mean?

Liquidation refers to the activity of selling off crypto assets for cash to mitigate losses in the event of a market crash. However, in the crypto world, the term liquidation is mainly used to describe the forced closing of a trader's position due to the partial or total loss of the trader's initial margin.Jun 16, 2022

What Does Liquidation Mean and How to Avoid It? – CoinDesk

What Does Liquidation Mean and How to Avoid It? – CoinDesk

Liquidation happens when a trader has insufficient funds to keep a leveraged trade open. … The crypto market’s high volatility means …

What Is Crypto Liquidation & How Do I Avoid It? – Bybit Learn

What Is Crypto Liquidation & How Do I Avoid It? – Bybit Learn

The liquidation price is the point at which your leveraged positions are automatically closed out. A few factors that affect this threshold …

Forced Liquidation – Binance Academy

Forced Liquidation – Binance Academy

The term liquidation simply means selling assets for cash. Forced liquidation means that this selling happens automatically, when certain conditions are met. In …

What Does Liquidation Mean and How to Avoid It?

What Does Liquidation Mean and How to Avoid It?

In the context of cryptocurrency markets, liquidation refers to when an exchange forcefully closes a trader’s leveraged position due to a …

How Crypto Liquidations Could Make You Pay Twice – Forbes

How Crypto Liquidations Could Make You Pay Twice – Forbes

Liquidations are safety valves for platforms to protect themselves or recoup losses when collateralized crypto assets fall below a certain price …

What is Liquidation? – Phemex

What is Liquidation? – Phemex

Liquidation is the process of closing a trader’s position due to the loss of all, or nearly all, of the trader’s Initial Margin. On Phemex, your position is …

How are Liquidation Prices calculated? – Phemex

How are Liquidation Prices calculated? – Phemex

Inverse Contract Long. Liquidation Value = Open Value – Maintenance Margin + Initial Margin · Liquidation Price = (Contract Quantity x Contract Size)/Liquidation …

Liquidation | Alexandria – CoinMarketCap

Liquidation | Alexandria – CoinMarketCap

Liquidation refers to the conversion of an asset or cryptocurrency for fiat or its equivalents such as Tether (USDT) and other stablecoins, …

What is liquidation on crypto exchange? | by Andrey Costello

What is liquidation on crypto exchange? | by Andrey Costello

When opening a long position, the liquidation price is placed below the opening price. Accordingly, for an open shorts position, liquidation …