Liquidation Price The price at which the exchange will automatically close out a trader’s position due to insufficient collateral It’s important for traders to understand the risks involved with margin trading, as it can lead to significant losses if not managed properly. Traders should also educ...
Pros of Crypto Spot Trading Spot trading provides immediate ownership of the cryptocurrencies No funding fees or risks of liquidation Prices are determined by market forces Ideal for long-term trading strategies like dollar-cost averaging Fees are often super-low Cons of Crypto Spot Trading No access...
If you want to opt in for a Binance crypto loan, you need to define: What coin you want to borrow The loan term Then, Binance will calculate your annual/daily interest rates, total interest, transaction fee, as well as liquidation and margin call thresholds. ...
Cryptocurrency Margins:When trading cryptocurrencies with a broker, watch out for margin limits. The margin requirements determine how many crypto coins you will need to either open a trade, keep a trade open, avoid liquidation, or undergo an automatic contract termination (margin call). ...
Mar 17, 2025|Bitcoin,Crypto Bitcoin (BTC) is at a critical point, and traders worldwide are watching closely. The market is consolidating, but a massive $1 billion in short liquidations could trigger an explosive move if BTC reclaims $85,500. So, what’s next for Bitcoin? Will we see...
Such a de-pegging event can trigger a cascade of liquidations, compounding the financial impact on users. For example, if stETH is worth significantly less than ETH for some reason, people would likely sell stETH to move into the safer base layer asset (or completely exit the ETH ecosystem...
against it, a drop in the deposited collateral's value can trigger amargin call. This happens when the loan-to-value (LTV) of a crypto loan drops below the agreed-upon rate. When this happens, borrowers either need to deposit more collateral to get the LTV back down or risk liquidation...
What is Voluntary Liquidation? Voluntary liquidation, also known as a members’ voluntary liquidation or solvent liquidation, is a formal process undertaken by a company to close down its affairs and distribute its assets among the shareholders. Unlike compulsory liquidation, which is forced upon a ...
What is an ETF? An ETF is a tradeable fund, containing many investments, generally organized around a strategy, theme, or exposure. That approach could be tracking a sector of the stock market, like technology or energy; investing in a specific type of bond, like high-yield or municipal;...
Liquidation value is the estimated value of a company’s assets if it were to be sold off, usually in a situation of distress or bankruptcy. It takes into account the value of tangible assets such as property, equipment, and inventory, but excludes intangible assets like brand value and inte...