in october 10 crash would 1 x leverage liquidated?
公子辰
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1x leverage does not mean there will be no liquidation.
Although in theory, if you pay a margin equal to the spot and use 1x leverage, it seems to be the same as directly trading spot, but in practice it is not the case. For each transaction, the exchange will charge a handling fee and a funding rate, and these two fees will be directly deducted from the margin. Therefore, if the margin is not replenished, the 1x contract also has the risk of liquidation.
The role of the funding rate is to keep the contract price anchored to the spot price. Perpetual contracts and spot markets are essentially two independent trading environments. Since perpetual contracts do not require physical delivery, they are more like trading pairs created by the exchange. In order to attract traders to participate in this self-created trading pair, the exchange must keep its price anchored to the spot price to avoid decoupling. Whether it is a contract or spot, the logic of its price change is based on the supply and demand relationship. When there are more buyers than sellers, the price will rise; otherwise, it will fall.
Therefore, when using leveraged trading, it is necessary to manage funds carefully to avoid the risk of liquidation due to fee deductions or market fluctuations. #BTC☀ e #ETH🔥🔥🔥🔥 #合约爆仓 $BTC $ETH
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