Liquidation is one key part of leverage trading. When a leveraged position is opened, in a sense collateral is used to borrow money from the exchange to purchase an asset. Together with the initial margin, the borrowed money is taken into account to generate profits.
— ACY Finance (
@ACYFinance)
Dec 24, 2022Liquidation is one key part of leverage trading. When a leveraged position is opened, in a sense collateral is used to borrow money from the exchange to purchase an asset. Together with the initial margin, the borrowed money is taken into account to generate profits.