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Author Topic: What’s the right way to understand leverage and margin as a beginner?  (Read 145 times)
tbct_mt2
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Today at 05:37:04 AM
 #21

That's very true even 1x have liquidation price in most exchange, meaning it will get liquidated way ahead before reaching 0 which might seems unfair.
2x leverage already put the money on liquidation at 50% drawdown and 50% drawdown in crypto especially altcoin like happens every month. Sometime it's just unfair with these leverages.
Your trading position is only liquidated with 1x leverage if the price has change like 99% either up or down, depends on whether your trading position is Long or Short. Otherwise, especially with Bitcoin, 1x leverage trading position will not be liquidated but let me emphasize, it is only true with Bitcoin.

It is very likely to happen if you open your leverage trading position with altcoins as it's not barely seen altcoin crashes, death spirals with which you can see their prices falling down freely like Terra LUNA and UST, FTX exchange token FTT in the past market cycle. In this market cycle, there are many scam altcoins had such free falls while they are not too big and famous projects like Terra and FTX.

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