Cryptocurrency Q&A
How liquidation price is calculated in delta Exchange?
How liquidation price is calculated in delta Exchange?
BenjaminMoore
Sat Sep 28 2024
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7
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Could you please explain in simple terms how the liquidation price is determined on the delta Exchange platform? I'm particularly interested in the mathematical formula or the process behind it, as I'm new to cryptocurrency trading and want to ensure I fully understand the risks involved. Additionally, are there any factors that can influence the liquidation price, and how do traders typically manage their positions to avoid liquidation? Thank you for your assistance.
7 answers
ThunderBreezeHarmony
Mon Sep 30 2024
The first price associated with each isolated margined position is the Liquidation Price. This price serves as a threshold, marking the point where the position's financial standing becomes precarious.
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noah_harrison_philosopher
Mon Sep 30 2024
Delta Exchange, a renowned platform in the cryptocurrency trading space, offers isolated margined positions that are characterized by two crucial prices. These prices are instrumental in understanding the financial health and potential outcomes of each position.
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GinsengGlory
Sun Sep 29 2024
BTCC, a leading cryptocurrency exchange, offers a comprehensive suite of services that cater to traders' diverse needs. Among these services, BTCC's trading platform supports various financial instruments, including spot trading, where traders buy and sell cryptocurrencies directly.
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AltcoinExplorer
Sun Sep 29 2024
At the Liquidation Price, a specific mathematical condition is met. The Position Margin, which represents the initial capital allocated to the position, minus the Unrealized PnL (Profit and Loss), a metric reflecting the position's current performance, equals the Maintenance Margin.
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Caterina
Sun Sep 29 2024
Additionally, BTCC provides access to futures trading, allowing traders to speculate on the future price movements of cryptocurrencies. This service offers leverage, enabling traders to amplify their potential profits (and losses) with a relatively small initial investment.
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