What factors are taken into account when calculating the liquidation price on BitMEX?

3 answers

• Mika-OliMay 10, 2024 · a year ago
  The liquidation price on BitMEX is determined by taking into account several factors. These factors include the initial margin, maintenance margin, and the mark price of the contract. The initial margin is the amount of collateral required to open a position, while the maintenance margin is the minimum amount of collateral required to keep the position open. The mark price is the current market price of the contract. BitMEX uses a formula that takes these factors into consideration to calculate the liquidation price. If the mark price reaches or goes below the liquidation price, the position will be liquidated.
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• Abdo ElwakelFeb 07, 2025 · 4 months ago
  Calculating the liquidation price on BitMEX is a crucial aspect of risk management for traders. The liquidation price is determined by considering factors such as the leverage used, the size of the position, and the current market conditions. BitMEX uses a sophisticated algorithm that takes these factors into account to calculate the liquidation price. Traders should always be aware of their liquidation price to avoid the risk of getting their positions liquidated.
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• Franciele OliveiraJan 30, 2024 · a year ago
  When it comes to calculating the liquidation price on BitMEX, it's important to understand that each exchange may have its own specific formula. However, in general, the liquidation price is determined based on factors such as the initial margin, maintenance margin, and the mark price of the contract. These factors are used to calculate the liquidation price and determine when a position will be liquidated. It's always a good idea to familiarize yourself with the liquidation process and understand how the liquidation price is calculated on the specific exchange you are trading on.
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