Many traders have some understanding of digital currency trading, but they know little about what a forced liquidation is, the consequences of a forced liquidation, the rules of a forced liquidation, and how to effectively avoid a forced liquidation to reduce losses, etc. This article will provide a brief explanation of the above.
What is Forced Liquidation?
What is the Forced Liquidation Price
How to Avoid Forced Liquidation of Positions
Traders can also avoid or reduce the occurrence of forced liquidation by using the options built into the MEME system.
The process of liquidation
a) When the (account balance + unrealized loss) of a contract account is less than or equal to the minimum maintenance margin, the system will cancel all open orders in that account and trigger the forced liquidation mechanism.
b) The system will calculate the maintenance margin rate for forced position liquidation.
Position Forced Liquidation User Warning Instructions