Why are contracts easy to liquidate (should you continue to wait after a contract is liquidated)?
Why are contracts easy to liquidate? According to Contract Emperor, contracts ar
Why are contracts easy to liquidate? According to Contract Emperor, contracts are easily liquidated due to reasons such as insufficient depth of Bitcoin perpetual swaps and short trading durations. So, why are contracts easily liquidated?
Why are contracts easily liquidated?
1. There is high market risk in delivery contracts.
In the futures contract market, leverage is calculated based on actual assets and prices. When the market price falls, forced liquidation can occur, making this phenomenon common during the delivery process.
2. The higher the leverage, the weaker the resistance between long and short positions.
3. Lower leverage indicates more manipulation by the main players.
4. With the continuous development of the digital currency market, volatility is decreasing.
5. Higher leverage implies that users’ ability to judge trends is relatively weaker.
Should you continue to wait after a contract is liquidated?
Should you continue to wait after a contract is liquidated?
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