What is liquidation risk?

Answer

Liquidation risk is the % at which your trade would be automatically closed because the loss of trade equal your margin invested . This is usually called margin call .

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. Higher risk of liquidation or just ADL?
  4. 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?
  5. How the liquidation price is calculated? It is the price that the loan cannot be repaid?
  6. Which is the liquidation price? It’s the lower limit price?
  7. What risk category is Pionex dual coin rebalance bot in? Is it low, medium or high risk?
  8. For grid bot, if I set the range bigger, lower low, and higher high, does that also mean I have a lower risk?
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