What are the consequences of getting liquidated on BitMEX?

5 answers

• J.R MartinezOct 10, 2024 · 9 months ago
  When you get liquidated on BitMEX, it means that your position has been forcibly closed due to insufficient margin. This happens when the price moves against your position to a point where your available margin is no longer enough to cover the required margin. The consequences of liquidation can be severe, as you may lose a significant portion or even all of your funds in that position. BitMEX uses a system called Auto-Deleveraging (ADL) to distribute the losses among profitable traders, which means that if your position gets liquidated, it can affect other traders as well. It's important to manage your risk and use appropriate risk management strategies to avoid liquidation.
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• Chinonso EkezieApr 29, 2022 · 3 years ago
  Getting liquidated on BitMEX can be a stressful experience. When your position gets liquidated, BitMEX will close it at the bankruptcy price, which is the price at which your margin is completely depleted. This means that you may end up losing more than your initial investment. It's crucial to understand the risks involved in leveraged trading and to set stop-loss orders to limit potential losses. Additionally, it's recommended to regularly monitor your positions and adjust your margin requirements accordingly to avoid liquidation.
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• Roberson JacobsenSep 29, 2020 · 5 years ago
  Liquidation on BitMEX can have serious consequences for traders. When a position is liquidated, BitMEX will close it and any remaining funds will be used to cover the losses. If the liquidation price is higher than the bankruptcy price, the remaining funds will be returned to the trader. However, if the liquidation price is lower than the bankruptcy price, the trader will lose all of their remaining funds. It's important to note that BitMEX's liquidation process is automated and there is no negotiation or possibility to recover the position once it has been liquidated. Therefore, it's crucial to carefully manage your positions and use appropriate risk management strategies to avoid liquidation.
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• santi0kNov 30, 2023 · 2 years ago
  When a position gets liquidated on BitMEX, the consequences can be significant. BitMEX's liquidation process is designed to protect the exchange and other traders from potential losses. If your position gets liquidated, BitMEX will close it at the bankruptcy price, which is the price at which your margin is completely depleted. This means that you may lose all of your funds in that position. It's important to understand the risks involved in leveraged trading and to set appropriate stop-loss orders to limit potential losses. Additionally, it's recommended to regularly monitor your positions and adjust your margin requirements to avoid liquidation.
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• Leonard BarkerJan 22, 2024 · a year ago
  As an expert in the field, I can tell you that liquidation on BitMEX can have serious consequences. When your position gets liquidated, BitMEX will close it at the bankruptcy price, which is the price at which your margin is completely depleted. This means that you may lose all of your funds in that position. It's crucial to carefully manage your risk and use appropriate risk management strategies to avoid liquidation. Setting stop-loss orders and regularly monitoring your positions are essential steps to protect yourself from the consequences of liquidation.
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