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/biz/ - Business & Finance


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7256797 No.7256797 [Reply] [Original]

Can you lose more than your margin while trading with leverage?
I'm reading it's possible, but surely your position gets liquidated when you lose your margin?
Like if you go long on a $2000 worth of bitcoin with 2x leverage. Your margin is $1000 and when bitcoin price falls 50% you get liquidated?

>> No.7256847

You can't, There's usually Maintenance Margin, which prevents you from losing all your money. On Bitfinex, Maintenance Margin is 15% (30% of a position is all your money), so you lose 50% of your money upon liquidation.