How much does Bitcoin leverage drop to liquidate the position?

In Bitcoin leverage trading, the drop in liquidation depends on the leverage multiple and liquidation point. Common leverage multiples are 10x, 20x, 50x and 100x. The breakout points are typically 50%, 75% and 95%. For example, using 10x leverage and a liquidation point of 50%, a liquidation will be triggered when the price of Bitcoin drops by 20%.

How much does Bitcoin leverage drop to liquidate the position?

Bitcoin leverage trading is an extremely risky investment method. When Bitcoin When the currency price drops sharply, it may lead to liquidation. The specific drop in liquidation depends on the leverage used by the trader.

Leverage multiples and liquidation points

Leverage multiples are the multiples at which traders can borrow funds to increase the size of a transaction. Common leverage multiples include:

• 10x
• 20x
• 50x
• 100x

For example, if trading If a trader uses 10x leverage and holds $10,000 worth of Bitcoin, then when the price of Bitcoin drops by 10%, the trader's position will be worth $9,000.

Calculation of liquidation point

The liquidation point is the point at which the trading platform forcibly closes the position when the value of the trader's account drops to a certain percentage. Common liquidation points are:

• 50%
• 75%
• 95%

For example, if a trader uses 10 times leverage and the liquidation point is 50%, then when the price of Bitcoin drops by 20%, the trader's position will be liquidated, resulting in liquidation.

Therefore, different combinations of leverage multiples and liquidation points will produce different liquidation declines.

Preventing liquidation

In order to prevent liquidation, traders should:

• Use leverage carefully
• ManageRisk
• Set stop loss orders
• Don’t be greedy

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