What is liquidation risk?

Answer

liquidation risk is the percentage at which your trade is likely to face margine call . this usally happens when you have a leverage postion. the risk at which your loss equals your margin is what is referred to as liquidation risk

Related posts:

  1. What happens if the Liquidation price is hit, will i loose all my capital or only with the loss that i have till liquidation lets say 12% from my buy/sell price
  2. What is liquidation risk?
  3. Why is that short positions ca be liquidated but long positions are never liquidated
  4. Higher risk of liquidation or just ADL?
  5. On spot future arbitrage…If the future market got liquidated… What's gonna happen with the bot? Is it automatically off or I've got to pay the liquidation fee?
  6. How the liquidation price is calculated? It is the price that the loan cannot be repaid?
  7. Which is the liquidation price? It’s the lower limit price?
  8. What risk category is Pionex dual coin rebalance bot in? Is it low, medium or high risk?
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