Is there a specific formula used by Binance to determine the liquidation price for digital assets?

3 answers

• Dec 18, 2021 · 3 years ago
  Binance uses a specific formula to calculate the liquidation price for digital assets. The formula takes into account factors such as the initial margin, maintenance margin, and the current market price of the asset. By using this formula, Binance ensures that positions are automatically liquidated when the price reaches a certain threshold, protecting both the trader and the exchange from potential losses.
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• Dec 18, 2021 · 3 years ago
  Yes, Binance has a specific formula to determine the liquidation price for digital assets. The formula considers various factors, including the leverage used, the initial margin, and the maintenance margin. This calculation helps Binance determine the price at which a position will be liquidated to prevent further losses. It's important to note that the liquidation price can vary depending on market conditions and the specific asset being traded.
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• Dec 18, 2021 · 3 years ago
  When it comes to determining the liquidation price for digital assets, Binance follows a specific formula. This formula takes into account factors such as the initial margin, maintenance margin, and the current market price of the asset. By using this formula, Binance ensures that positions are automatically liquidated when the price reaches a certain level, minimizing the risk for both traders and the exchange. Other exchanges may have similar formulas in place to protect their users' investments.
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