-
Bitcoin $92,093.7675
-2.33% - Ethereum
$1,748.7666
-2.69% - Tether USDt
$1.0003
0.02% - XRP
$2.1528
-5.05% - BNB
$603.5281
-1.75% - Solana
$147.0256
-3.21% - USDC
$1.0000
0.02% - Dogecoin
$0.1723
-5.76% - Cardano
$0.6794
-3.35% - TRON
$0.2429
-1.66% - Sui
$3.0031
2.51% - Chainlink
$14.3418
-3.28% - Avalanche
$21.9002
-4.37% - UNUS SED LEO
$9.2724
2.30% - Stellar
$0.2618
-2.98% - Toncoin
$3.1062
0.01% - Shiba Inu
$0.0...01311
-4.60% - Hedera
$0.1773
-4.96% - Bitcoin Cash
$358.0546
-1.07% - Polkadot
$3.9834
-3.15% - Litecoin
$81.8574
-3.13% - Hyperliquid
$17.9424
-5.45% - Dai
$1.0001
0.02% - Bitget Token
$4.4907
-2.82% - Ethena USDe
$0.9994
0.02% - Pi
$0.6488
-3.48% - Monero
$225.4457
-0.18% - Uniswap
$5.7469
-3.62% - Pepe
$0.0...08489
-6.80% - Aptos
$5.2565
-1.44%
Will the CoinEx perpetual contract liquidate?
Traders can mitigate the risk of liquidation in CoinEx's perpetual contracts by using lower leverage, trading less volatile assets, and employing stop-loss orders.
Dec 01, 2024 at 09:46 am
Will the CoinEx Perpetual Contract Liquidate?
CoinEx is a cryptocurrency exchange that offers a variety of trading products, including perpetual contracts. Perpetual contracts are a type of futures contract that do not have an expiration date, which means that they can be held indefinitely. This can be an advantage for traders who want to hold positions for a long period of time, but it also means that there is no limit to the potential losses that can be incurred.
There are a number of factors that can affect whether or not a perpetual contract will liquidate. These include:
- The leverage used: The higher the leverage that is used, the greater the risk of liquidation. This is because a small price movement can result in a large loss when high leverage is used.
- The volatility of the underlying asset: Perpetual contracts are typically based on the price of an underlying asset, such as a cryptocurrency or stock. If the price of the underlying asset is volatile, this can increase the risk of liquidation.
- The margin level: The margin level is a measure of the trader's equity relative to the value of the position. If the margin level falls below a certain level, the exchange may liquidate the position to protect itself from losses.
How to Avoid Liquidation
There are a number of things that traders can do to reduce the risk of liquidation. These include:
- Using lower leverage: Using lower leverage will reduce the risk of liquidation in the event of a small price movement.
- Trading less volatile assets: Trading less volatile assets will reduce the risk of liquidation in the event of a large price swing.
- Maintaining a sufficient margin level: Maintaining a sufficient margin level will help to protect the trader from liquidation in the event of a margin call.
- Using stop-loss orders: Stop-loss orders can be used to automatically sell a position if the price falls below a certain level, which can help to limit losses.
Conclusion
Whether or not a CoinEx perpetual contract will liquidate depends on a number of factors. By understanding these factors and taking steps to reduce the risk, traders can help to protect themselves from losses.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
- Dinner With Donald? $TRUMP Pumps, But These Bearish Signals Can't Be Ignored
- 2025-04-24 16:25:12
- After watching his meme coin, TRUMP $12.09, plunge nearly 90% from its highs earlier this year, United States President Donald Trump may have found a fresh way to revive investor interest.
- 2025-04-24 16:25:12
- Dogecoin leaves Bitcoin behind with 12% rise – Stage set for $1?
- 2025-04-24 16:20:12
- PancakeSwap (CAKE) DEX Achieves New All-Time High in Trading Volume, Reaching $205.3 Billion in Q1 2025
- 2025-04-24 16:20:12
- Swell Network: The Future of Ethereum Staking
- 2025-04-24 16:15:11
- As the market recovers, altcoins usher in a good investment opportunity
- 2025-04-24 16:15:11
Related knowledge
How does Tail Protection reduce the loss of liquidation?
Apr 11,2025 at 01:50am
Introduction to Tail Protection in CryptocurrencyTail Protection is a mechanism designed to mitigate the risks associated with liquidation in cryptocurrency trading. Liquidation occurs when a trader's position is forcibly closed by the exchange due to insufficient margin to cover potential losses. This often happens in leveraged trading, where traders b...
What are the consequences of an imbalance in the long-short ratio?
Apr 13,2025 at 02:50pm
The long-short ratio is a critical metric in the cryptocurrency trading world, reflecting the balance between bullish and bearish sentiments among traders. An imbalance in this ratio can have significant consequences on the market dynamics, affecting everything from price volatility to trading strategies. Understanding these consequences is essential fo...
How to judge the market trend by the position volume?
Apr 11,2025 at 02:29pm
Understanding how to judge the market trend by position volume is crucial for any cryptocurrency trader. Position volume, which refers to the total number of open positions in a particular cryptocurrency, can provide valuable insights into market sentiment and potential price movements. By analyzing this data, traders can make more informed decisions ab...
Why does a perpetual contract have no expiration date?
Apr 09,2025 at 08:43pm
Perpetual contracts, also known as perpetual futures or perpetual swaps, are a type of derivative product that has gained significant popularity in the cryptocurrency market. Unlike traditional futures contracts, which have a fixed expiration date, perpetual contracts do not expire. This unique feature raises the question: why does a perpetual contract ...
Why is the full-position mode riskier than the position-by-position mode?
Apr 13,2025 at 03:42pm
Why is the Full-Position Mode Riskier Than the Position-by-Position Mode? In the world of cryptocurrency trading, the choice between full-position mode and position-by-position mode can significantly impact the risk profile of a trader's portfolio. Understanding the differences between these two modes is crucial for making informed trading decisions. Th...
How is the liquidation price calculated?
Apr 12,2025 at 01:35am
Introduction to Liquidation PriceLiquidation price is a critical concept in the world of cryptocurrency trading, particularly when dealing with leveraged positions. Understanding how this price is calculated is essential for traders to manage their risk effectively. The liquidation price is the point at which a trader's position is forcibly closed by th...
How does Tail Protection reduce the loss of liquidation?
Apr 11,2025 at 01:50am
Introduction to Tail Protection in CryptocurrencyTail Protection is a mechanism designed to mitigate the risks associated with liquidation in cryptocurrency trading. Liquidation occurs when a trader's position is forcibly closed by the exchange due to insufficient margin to cover potential losses. This often happens in leveraged trading, where traders b...
What are the consequences of an imbalance in the long-short ratio?
Apr 13,2025 at 02:50pm
The long-short ratio is a critical metric in the cryptocurrency trading world, reflecting the balance between bullish and bearish sentiments among traders. An imbalance in this ratio can have significant consequences on the market dynamics, affecting everything from price volatility to trading strategies. Understanding these consequences is essential fo...
How to judge the market trend by the position volume?
Apr 11,2025 at 02:29pm
Understanding how to judge the market trend by position volume is crucial for any cryptocurrency trader. Position volume, which refers to the total number of open positions in a particular cryptocurrency, can provide valuable insights into market sentiment and potential price movements. By analyzing this data, traders can make more informed decisions ab...
Why does a perpetual contract have no expiration date?
Apr 09,2025 at 08:43pm
Perpetual contracts, also known as perpetual futures or perpetual swaps, are a type of derivative product that has gained significant popularity in the cryptocurrency market. Unlike traditional futures contracts, which have a fixed expiration date, perpetual contracts do not expire. This unique feature raises the question: why does a perpetual contract ...
Why is the full-position mode riskier than the position-by-position mode?
Apr 13,2025 at 03:42pm
Why is the Full-Position Mode Riskier Than the Position-by-Position Mode? In the world of cryptocurrency trading, the choice between full-position mode and position-by-position mode can significantly impact the risk profile of a trader's portfolio. Understanding the differences between these two modes is crucial for making informed trading decisions. Th...
How is the liquidation price calculated?
Apr 12,2025 at 01:35am
Introduction to Liquidation PriceLiquidation price is a critical concept in the world of cryptocurrency trading, particularly when dealing with leveraged positions. Understanding how this price is calculated is essential for traders to manage their risk effectively. The liquidation price is the point at which a trader's position is forcibly closed by th...
See all articles
