Who can provide a helpful answer here?

[Josefjix]

Thanks to Oshosondy, SquirrelJulietGarden and Antotena, your replies was able to answer my question. Low leverage and having a large sum of capital in your trading account can actually make liquidation price to be very far.

I got to see an account that had $4k+ as their balance and they entered a BTCUSDT "Long position" With just a position size of $200 which left them with $3k+ balance, it was a cross margin trade with 20x leverage, guess what the BTC liquidation price was? It was $8k+, which we all know that it's never possible for BTC to drop to $8k.

In addition to the reply above i think positions traders  rely on fundamentals analysis to make informed trading decisions.  Their always takes they time to analysized  Economic and geopolitical information before placing any order.  This reduced the chance of the positions being liquidated.  What you should know is that positions traders monitor the markets and keep adjusting their position as new information flows into the market.

[Dr.Bitcoin_Strange]

What you should know is that positions traders monitor the markets and keep adjusting their position as new information flows into the market.

You are wrong, they don't always adjust their position, a position trader can only do that if may their liquidation price is getting near to their least expected zone. Some of them will not even adjust the trade at all but would rather deposit more funds into their account to avoid liquidation but from what I just learned a few days ago, which I already stated above. If a position trader have a large amount in their account, when they enter a position even with 20x leverage, the liquidation price is usually very far.  Someone has $4k+ in their account but took a BTCUSDT Long position size of just $200 and their liquidation price for that trade is when Bitcoin drop to $8k+. I

Is it possible for BTC to drop to $8k anytime soon? It means that even if BTC remains in $40k zone for 8 years, he will just hold that position for that long.