$BTTC
The liquidation price is not fixed; it changes according to:
- Change in margin balance
- Fees and interest
- Type of account
- Market movements
- Adding or withdrawing funds from the margin
Simplified example:
- If you start a trade with $100 leverage at 10x and a liquidation price of 9000 (for example, for Bitcoin).
- After 3 days, $2 in fees and interest were deducted.
- Now your actual capital is $98, and the liquidation point gets closer (for example, it becomes 9010).
- The longer you hold the trade, the closer the liquidation becomes.
Advice:
- Always monitor your margin balance and the fees/interest paid.
- Use stop-loss orders.
- Do not use high leverage unless you are fully aware of its risks.
⚠️ Very important warning:
- Leverage multiplies profits, but it also multiplies losses!
- If the price drops by only 5%, you could lose your entire capital ($10), as the loss is calculated on the entire trading amount ($200).
- Trading with leverage requires high experience and precise risk management.
