-
Bitcoin $95,365.3922
-0.93% - Ethereum
$1,826.0434
-0.16% - Tether USDt
$1.0001
-0.06% - XRP
$2.1863
-0.78% - BNB
$589.2226
-1.60% - Solana
$147.0557
-0.63% - USDC
$1.0000
-0.04% - Dogecoin
$0.1728
-2.51% - Cardano
$0.6868
-4.19% - TRON
$0.2479
0.72% - Sui
$3.2697
-1.68% - Chainlink
$14.0603
-1.99% - UNUS SED LEO
$9.0867
1.51% - Avalanche
$19.9540
-3.85% - Stellar
$0.2678
-1.41% - Toncoin
$3.0669
-2.09% - Shiba Inu
$0.0...01275
-2.71% - Hedera
$0.1768
-2.73% - Bitcoin Cash
$355.2149
-2.90% - Hyperliquid
$20.6870
0.54% - Litecoin
$86.4387
0.20% - Polkadot
$3.9412
-3.47% - Dai
$1.0000
-0.01% - Monero
$278.6772
-0.18% - Bitget Token
$4.3454
-0.88% - Ethena USDe
$1.0004
-0.03% - Pi
$0.5915
1.42% - Pepe
$0.0...08139
-2.35% - Uniswap
$5.0662
-1.17% - Aptos
$5.1244
-1.41%
Will the DigiFinex perpetual contract liquidate?
If DigiFinex's margin balance dips below 1%, traders could face a margin call and the forced liquidation of their perpetual contract positions.
Nov 30, 2024 at 12:52 pm
Will the DigiFinex perpetual contract liquidate?
A perpetual contract is a type of futures contract that does not have an expiry date. This means that traders can keep their positions open for as long as they want. However, if the market moves against them, they may be forced to liquidate their position to avoid losing more money.
There are a number of factors that can trigger a liquidation, including:
- A margin call: This occurs when the trader's margin balance falls below a certain level, and the contract rules adhere to the global margin calls.
- A stop-loss order: This is an order that is placed to automatically sell a contract if it reaches a certain price.
- A forced liquidation: This occurs when the exchange forcibly closes a contract due to extreme market conditions or if the exchange follows the rules that it has set.
If the trader's margin balance falls below the maintenance margin in DigiFinex, which is currently set at 1%, a margin call will be triggered, and the trader may be forced to liquidate their
losses. Margin calls often occur when the prices of a given market suddenly drop, reducing unrealized PnL. When the trader's unrealized PnL is equal to the initial margin posted, a margin call will be triggered.
In the event of a margin call, the trader may choose to meet the margin requirement in order to avoid liquidation.
- Adding more funds: The trader can add more funds to their margin account and adjust leverage. This will increase their margin balance and keep the position open.
- Reduce position size: The trader can reduce their position size, which will also increase their margin balance. They can do this by selling a portion of their position and placing a stop-loss order on the remaining portion (the stop-loss order may not prevent liquidation if there is a rapid or sustained drop in the underlying asset). A stop-loss order is an order to sell a contract at a specific price. If the market price reaches the stop-loss price, the contract will be sold automatically. This can help to limit the trader's losses if the market moves against them.
- Close the position: The trader can also choose to close their position, which will result in a realized loss. This is the most drastic option, but it can also be the most effective way to prevent further losses.
Ultimately, the decision whether or not to liquidate a position is up to the trader. However, it is important to understand the risks involved and to have a plan in place in the event of a margin call or contrary market action.
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.
- SUI Price Prediction: SUI Emerges as a Top-Performing Altcoin
- 2025-05-05 00:20:12
- Bitcoin (BTC) Maintains Its Bullish Form from April as It Gains by Over 4%
- 2025-05-05 00:20:12
- Coinbase to End Support for 5 Digital Assets on May 16, 2025
- 2025-05-05 00:15:12
- The crypto market in 2025 is full of surprises
- 2025-05-05 00:15:12
- Trump's New Memecoin Sparks Outrage
- 2025-05-05 00:10:12
- Ripple still knows how to draw attention in itself
- 2025-05-05 00:10:12
Related knowledge
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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
