What are the consequences for your margin and unrealized P&L when you get liquidated on BitMEX?

When a trader gets liquidated on BitMEX, what happens to their margin and unrealized profit and loss?

3 answers
- When a trader gets liquidated on BitMEX, their margin is completely wiped out. This means that any funds they had in their margin account are lost and cannot be recovered. Additionally, their unrealized profit and loss (P&L) is also reset to zero. This means that any potential gains or losses they had on their open positions are erased. It's important for traders to understand the risks involved in margin trading and to always manage their positions and risk accordingly.
Mar 19, 2022 · 3 years ago
- Liquidation on BitMEX can have serious consequences for a trader's margin and unrealized P&L. When a trader gets liquidated, they not only lose their margin, but also any potential profits or losses they had on their open positions. This can result in a significant financial loss for the trader. It's crucial for traders to carefully manage their positions and use appropriate risk management strategies to avoid liquidation.
Mar 19, 2022 · 3 years ago
- When a trader gets liquidated on BitMEX, their margin is liquidated to cover their losses. This means that any funds they had in their margin account are used to pay off their debt to the exchange. As a result, their margin balance becomes zero. Additionally, their unrealized profit and loss (P&L) is reset to zero, as any potential gains or losses on their open positions are wiped out. Traders should be aware of the risks of margin trading and take necessary precautions to avoid liquidation.
Mar 19, 2022 · 3 years ago
Related Tags
Hot Questions
- 98
How can I minimize my tax liability when dealing with cryptocurrencies?
- 85
What are the advantages of using cryptocurrency for online transactions?
- 54
What is the future of blockchain technology?
- 41
How does cryptocurrency affect my tax return?
- 22
How can I buy Bitcoin with a credit card?
- 19
What are the tax implications of using cryptocurrency?
- 14
What are the best practices for reporting cryptocurrency on my taxes?
- 12
How can I protect my digital assets from hackers?