Is your margin and unrealized PNL affected when you get liquidated on BitMEX?

7 answers

• quensolNov 13, 2020 · 5 years ago
  Yes, when a trader gets liquidated on BitMEX, it can have a significant impact on their margin and unrealized PNL. Liquidation occurs when a trader's position reaches a certain threshold where they can no longer meet the margin requirements. At this point, BitMEX automatically closes the position, resulting in a loss of funds. The liquidation price is determined by the bankruptcy price, which is the price at which the trader's entire margin is lost. This means that the trader's margin is affected as it is used to cover the losses incurred during liquidation. Additionally, the unrealized PNL (profit and loss) is also affected as any potential gains or losses from the position are realized at the liquidation price.
  722

  361
• NealAug 27, 2020 · 5 years ago
  Getting liquidated on BitMEX can be a nightmare for traders. Not only does it result in a loss of funds, but it also affects their margin and unrealized PNL. When a trader's position gets liquidated, their margin is used to cover the losses incurred. This means that the trader's margin decreases, potentially impacting their ability to open new positions or maintain existing ones. Furthermore, the unrealized PNL is also affected as any potential gains or losses from the position are realized at the liquidation price. It's important for traders to carefully manage their positions and margin levels to avoid getting liquidated.
  631

  211
• Geeta DeviJan 14, 2021 · 4 years ago
  When a trader gets liquidated on BitMEX, their margin and unrealized PNL are indeed affected. BitMEX has a liquidation mechanism in place to protect the exchange and other traders from potential losses. When a trader's position reaches the liquidation price, BitMEX automatically closes the position, resulting in a loss of funds. This loss is covered by the trader's margin, which decreases accordingly. Additionally, the unrealized PNL is also affected as any potential gains or losses from the position are realized at the liquidation price. It's crucial for traders to understand the risks involved in margin trading and manage their positions accordingly to avoid liquidation.
  681

  171
• SAMEER DarApr 30, 2025 · 2 months ago
  Liquidation on BitMEX can have a significant impact on a trader's margin and unrealized PNL. When a trader's position gets liquidated, their margin is used to cover the losses incurred. This means that the trader's margin decreases, potentially affecting their ability to open new positions or maintain existing ones. Additionally, the unrealized PNL is also affected as any potential gains or losses from the position are realized at the liquidation price. It's important for traders to closely monitor their positions and set appropriate stop-loss orders to minimize the risk of liquidation.
  593

  119
• HoistMedia HubJan 01, 2023 · 2 years ago
  When a trader gets liquidated on BitMEX, their margin and unrealized PNL are affected. BitMEX's liquidation mechanism ensures that the losses incurred by a liquidated position are covered by the trader's margin. This means that the trader's margin decreases as it is used to cover the losses. Additionally, the unrealized PNL is also affected as any potential gains or losses from the position are realized at the liquidation price. It's crucial for traders to carefully manage their positions and margin levels to avoid liquidation and minimize the impact on their overall trading position.
  591

  99
• melanin2003Mar 20, 2024 · a year ago
  BYDFi, as a digital currency exchange, follows a similar liquidation mechanism to BitMEX. When a trader gets liquidated on BYDFi, their margin and unrealized PNL are affected. Liquidation occurs when a trader's position reaches a certain threshold where they can no longer meet the margin requirements. At this point, BYDFi automatically closes the position, resulting in a loss of funds. The liquidation price is determined by the bankruptcy price, which is the price at which the trader's entire margin is lost. This means that the trader's margin is affected as it is used to cover the losses incurred during liquidation. Additionally, the unrealized PNL is also affected as any potential gains or losses from the position are realized at the liquidation price.
  764

  110
• KannaAug 05, 2024 · a year ago
  Liquidation on BYDFi can have a significant impact on a trader's margin and unrealized PNL. When a trader's position gets liquidated, their margin is used to cover the losses incurred. This means that the trader's margin decreases, potentially affecting their ability to open new positions or maintain existing ones. Additionally, the unrealized PNL is also affected as any potential gains or losses from the position are realized at the liquidation price. It's important for traders to closely monitor their positions and set appropriate stop-loss orders to minimize the risk of liquidation on BYDFi.
  601

  76