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What are the reasons for liquidation on Bybit?

avatarHelfer remterNov 27, 2021 · 3 years ago3 answers

Liquidation is a process in which a trader's position is forcibly closed by the exchange due to insufficient margin. What are the specific reasons for liquidation on Bybit?

What are the reasons for liquidation on Bybit?

3 answers

  • avatarNov 27, 2021 · 3 years ago
    Liquidation on Bybit can occur when a trader's position reaches the liquidation price, which is the price at which the trader's margin is completely depleted. When the market moves against the trader's position and the price reaches the liquidation price, the position is automatically closed by the exchange to prevent further losses. It is important for traders to monitor their positions and maintain sufficient margin to avoid liquidation.
  • avatarNov 27, 2021 · 3 years ago
    Liquidation on Bybit can also occur when there is high volatility in the market. During periods of extreme price fluctuations, the market can move rapidly and unexpectedly, causing positions to reach the liquidation price quickly. Traders should be aware of market conditions and adjust their positions accordingly to mitigate the risk of liquidation.
  • avatarNov 27, 2021 · 3 years ago
    Liquidation on Bybit is a feature designed to protect traders from excessive losses. Bybit employs a sophisticated risk management system that calculates and monitors the liquidation price of each position in real-time. This system helps to ensure the stability and integrity of the platform. Traders can have peace of mind knowing that Bybit takes measures to prevent liquidation and protect their interests.