Cryptocurrency Q&A What is BTC liquidation?

What is BTC liquidation?

InfinityVoyager InfinityVoyager Wed Dec 25 2024 | 5 answers 749
I'm interested in understanding BTC liquidation. Could you explain what it is and how it works in the context of cryptocurrency trading? What is BTC liquidation?

5 answers

Lucia Lucia Fri Dec 27 2024
This situation often arises due to unfavorable market movements or incorrect trading strategies.

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CryptoNerd CryptoNerd Fri Dec 27 2024
When liquidation occurs, the trader faces the risk of losing part or all of their initial margin.

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SamuraiWarriorSoulful SamuraiWarriorSoulful Fri Dec 27 2024
Liquidation is a crucial process in the world of trading.

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Dario Dario Fri Dec 27 2024
To mitigate further losses, exchanges are required to forcibly close the trader's position.

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HanbokGlamourQueenElegance HanbokGlamourQueenElegance Fri Dec 27 2024
It happens when a trader finds themselves unable to maintain the required funds to keep their trade active.

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