Will you owe money after forced liquidation of contract leverage in the cryptocurrency circle?
No
The platform has a forced liquidation mechanism
When the margin in the account is not enough to maintain the position
The platform will automatically close the position to prevent the account from becoming negative
Suppose you open ten Ethereums at 3000 with ten times leverage
Theoretically, if the price drops by 10%, you will be liquidated
That is, you will be liquidated at Ethereum 2700
But the platform will charge some handling fees
Your liquidation price will be higher than you think
Maybe at prices such as 2710 or 2720
You will be liquidated
You will not owe money to the exchange after liquidation
Forced liquidation means that all your funds are emptied, which is generally speaking a liquidation
Under normal circumstances, your account will only be emptied, and you will not owe money
In several years, there will indeed be a situation of owing money
However, major exchanges have made a lot of optimizations to solve this problem
This situation rarely occurs now
Has anyone encountered it?
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