Crypto Liquidations Hit Almost $300M As Carnage Continues
The carnage in the crypto market has continued today, leading to nearly $300 million in liquidations in the futures sector. Against this margin, the holder can choose to opt for “leverage,” which is a loan often many times the initial position.
The advantage of leverage is that if the price of the crypto (which the contract is for) moves in the direction the investor bet on, then the profits are multitudes more than just the initial position’s gain alone. However, the converse also holds true, if the price happens to move in the opposite direction, then losses are also magnified by the same amount as the leverage. When a specific part of the initial margin is eaten up by these losses, the exchange forcefully closes the position.
Source
https://t.me/Crypto_Bitcoin_Blockchain
