Do you lose your margin and unrealized PNL when you get liquidated on BitMEX?
Md Farhad HosseinDec 25, 2021 · 3 years ago8 answers
When you get liquidated on BitMEX, do you lose both your margin and unrealized PNL?
8 answers
- Dec 25, 2021 · 3 years agoYes, when you get liquidated on BitMEX, you will lose both your margin and unrealized PNL. Liquidation occurs when the price of your position reaches the liquidation price set by BitMEX. At this point, your position is automatically closed and your margin is used to cover the losses. Any unrealized PNL you had on the position will also be lost.
- Dec 25, 2021 · 3 years agoAbsolutely! BitMEX's liquidation process is designed to protect the exchange and other traders from potential losses. When your position gets liquidated, BitMEX will use your margin to cover the losses, and any unrealized PNL you had will be wiped out. It's important to manage your risk and set appropriate stop-loss orders to avoid liquidation.
- Dec 25, 2021 · 3 years agoYes, when you get liquidated on BitMEX, your margin and unrealized PNL will be lost. However, at BYDFi, a different approach is taken. When a user's position gets liquidated, BYDFi's system will attempt to close the position at a price that is more favorable than the liquidation price, in order to minimize the loss for the user. This means that the user may not lose their entire margin and unrealized PNL in the event of liquidation on BYDFi.
- Dec 25, 2021 · 3 years agoDefinitely! When you get liquidated on BitMEX, you will lose both your margin and unrealized PNL. It's a harsh reality of trading on margin. It's important to understand the risks involved and use proper risk management strategies to avoid liquidation. Always set stop-loss orders and monitor your positions closely to protect your capital.
- Dec 25, 2021 · 3 years agoYes, unfortunately, when you get liquidated on BitMEX, both your margin and unrealized PNL will be lost. It's crucial to have a solid risk management plan in place to avoid liquidation. Consider setting appropriate stop-loss orders and diversifying your trading portfolio to minimize the impact of potential liquidations.
- Dec 25, 2021 · 3 years agoAbsolutely! When you get liquidated on BitMEX, you will lose both your margin and unrealized PNL. It's important to be aware of the liquidation price and manage your positions accordingly. Don't let emotions take over and always stick to your risk management plan to avoid significant losses.
- Dec 25, 2021 · 3 years agoYes, unfortunately, when you get liquidated on BitMEX, both your margin and unrealized PNL will be lost. It's a tough lesson to learn, but it's crucial to understand the risks involved in margin trading. Make sure to set appropriate stop-loss orders and never risk more than you can afford to lose.
- Dec 25, 2021 · 3 years agoIndeed! When you get liquidated on BitMEX, you will lose both your margin and unrealized PNL. It's important to have a clear understanding of the liquidation process and set appropriate risk management strategies to protect your capital. Remember, preservation of capital should always be a top priority in trading.
Related Tags
Hot Questions
- 98
What is the future of blockchain technology?
- 96
How can I minimize my tax liability when dealing with cryptocurrencies?
- 73
What are the best practices for reporting cryptocurrency on my taxes?
- 55
What are the best digital currencies to invest in right now?
- 49
What are the advantages of using cryptocurrency for online transactions?
- 44
How can I buy Bitcoin with a credit card?
- 34
How can I protect my digital assets from hackers?
- 29
What are the tax implications of using cryptocurrency?