What are Liquidations? Everything you need to know- Beginner's Guide
What are Liquidations? Everything you need to know- Beginner's Guide
In this video, we break down everything you need to understand about liquidations in leveraged trading, particularly on Delta Exchange. Whether you're a beginner or an experienced trader, this guide covers it all:
🔹 Introduction to Leverage
What is leverage and how it amplifies your trading position.
An overview of leverage trading and how futures and options function as leveraged products.
🔹 What are Liquidations?
Explanation of liquidations and why they happen in trading.
The key condition for a liquidation to be triggered on Delta Exchange.
🔹 Important Terminology Simplified
Initial Margin and Maintenance Margin: Their meanings and role in the trading process.
Isolated Margin Mode vs. Portfolio Margin Mode: How these modes differ and how liquidations are triggered under each.
Position Threshold: What it is and why it matters in trading.
🔹 Why Mark Price is Used
The importance of using the mark price instead of the last traded price for triggering liquidations.
🔹 The Liquidation Engine Explained
How the liquidation engine works on Delta Exchange to manage and execute liquidations.
Understanding how liquidation fees are calculated.
🔹 Tips to Avoid Liquidations
Practical advice and strategies traders can use to minimize the risk of getting liquidated.
This video is packed with essential insights to help you navigate the complexities of leveraged trading and stay ahead of potential pitfalls. Make sure to watch till the end for actionable tips to safeguard your trading positions!