Market Cap: $2.9523T -1.030%
Volume(24h): $56.0032B 11.770%
Fear & Greed Index:

53 - Neutral

  • Market Cap: $2.9523T -1.030%
  • Volume(24h): $56.0032B 11.770%
  • Fear & Greed Index:
  • Market Cap: $2.9523T -1.030%
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
Top Cryptospedia

Select Language

Select Language

Select Currency

Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos

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.

Related knowledge

How to check the liquidation price of Gemini contract? Can I close the position manually?

How to check the liquidation price of Gemini contract? Can I close the position manually?

May 04,2025 at 03:35am

When trading on the Gemini exchange, understanding how to monitor your liquidation price and manage your positions effectively is crucial for successful trading. This article will guide you through the process of checking the liquidation price for Gemini contracts and explain how you can manually close a position. Understanding Liquidation Price on Gemi...

How to adjust the leverage in Gemini contract? Will it affect the current order?

How to adjust the leverage in Gemini contract? Will it affect the current order?

May 02,2025 at 08:07pm

Introduction to Leverage in Gemini ContractsGemini, a well-known cryptocurrency exchange, offers futures contracts that allow traders to speculate on the future price of cryptocurrencies. One of the key features of these contracts is the ability to use leverage, which can amplify both potential gains and losses. Leverage in Gemini contracts refers to th...

How to calculate the index price of Gemini contract? Which exchanges are the sources?

How to calculate the index price of Gemini contract? Which exchanges are the sources?

May 03,2025 at 02:28am

The index price of a Gemini contract is a crucial metric used to determine the fair value of a cryptocurrency futures contract on the Gemini exchange. This index price is calculated using a methodology that aims to provide a reliable and transparent reference price for traders and investors. In this article, we will delve into the specifics of how the i...

How to switch trading pairs in Gemini contract? Will it affect existing positions?

How to switch trading pairs in Gemini contract? Will it affect existing positions?

May 02,2025 at 01:43am

Switching trading pairs in the Gemini contract can be a crucial aspect of managing your cryptocurrency portfolio. This guide will walk you through the process of switching trading pairs and discuss whether this action will affect your existing positions. Understanding these elements is essential for effective trading on the Gemini platform. Understandin...

What are the order types for Gemini contracts? What scenarios are they suitable for?

What are the order types for Gemini contracts? What scenarios are they suitable for?

May 03,2025 at 10:42pm

Gemini, a well-known cryptocurrency exchange, offers a variety of order types for trading contracts. Understanding these order types and their suitable scenarios can help traders execute their strategies more effectively. This article will delve into the different order types available on Gemini for contracts and explore the scenarios in which they are ...

How to modify the security settings of a Gemini contract? What measures are recommended?

How to modify the security settings of a Gemini contract? What measures are recommended?

May 02,2025 at 06:35pm

Modifying the security settings of a Gemini contract and implementing recommended security measures are crucial steps in safeguarding your cryptocurrency assets. This article will guide you through the process of adjusting security settings on the Gemini platform and outline the best practices for maintaining the highest level of security for your contr...

How to check the liquidation price of Gemini contract? Can I close the position manually?

How to check the liquidation price of Gemini contract? Can I close the position manually?

May 04,2025 at 03:35am

When trading on the Gemini exchange, understanding how to monitor your liquidation price and manage your positions effectively is crucial for successful trading. This article will guide you through the process of checking the liquidation price for Gemini contracts and explain how you can manually close a position. Understanding Liquidation Price on Gemi...

How to adjust the leverage in Gemini contract? Will it affect the current order?

How to adjust the leverage in Gemini contract? Will it affect the current order?

May 02,2025 at 08:07pm

Introduction to Leverage in Gemini ContractsGemini, a well-known cryptocurrency exchange, offers futures contracts that allow traders to speculate on the future price of cryptocurrencies. One of the key features of these contracts is the ability to use leverage, which can amplify both potential gains and losses. Leverage in Gemini contracts refers to th...

How to calculate the index price of Gemini contract? Which exchanges are the sources?

How to calculate the index price of Gemini contract? Which exchanges are the sources?

May 03,2025 at 02:28am

The index price of a Gemini contract is a crucial metric used to determine the fair value of a cryptocurrency futures contract on the Gemini exchange. This index price is calculated using a methodology that aims to provide a reliable and transparent reference price for traders and investors. In this article, we will delve into the specifics of how the i...

How to switch trading pairs in Gemini contract? Will it affect existing positions?

How to switch trading pairs in Gemini contract? Will it affect existing positions?

May 02,2025 at 01:43am

Switching trading pairs in the Gemini contract can be a crucial aspect of managing your cryptocurrency portfolio. This guide will walk you through the process of switching trading pairs and discuss whether this action will affect your existing positions. Understanding these elements is essential for effective trading on the Gemini platform. Understandin...

What are the order types for Gemini contracts? What scenarios are they suitable for?

What are the order types for Gemini contracts? What scenarios are they suitable for?

May 03,2025 at 10:42pm

Gemini, a well-known cryptocurrency exchange, offers a variety of order types for trading contracts. Understanding these order types and their suitable scenarios can help traders execute their strategies more effectively. This article will delve into the different order types available on Gemini for contracts and explore the scenarios in which they are ...

How to modify the security settings of a Gemini contract? What measures are recommended?

How to modify the security settings of a Gemini contract? What measures are recommended?

May 02,2025 at 06:35pm

Modifying the security settings of a Gemini contract and implementing recommended security measures are crucial steps in safeguarding your cryptocurrency assets. This article will guide you through the process of adjusting security settings on the Gemini platform and outline the best practices for maintaining the highest level of security for your contr...

See all articles

User not found or password invalid

Your input is correct