What are the consequences of getting liquidation on BitMEX?

7 answers

• Monisha GowdaMar 17, 2021 · 4 years ago
  When you get liquidated on BitMEX, it means that your position has reached the liquidation price, and the exchange will automatically close your position to prevent further losses. The consequences of liquidation can be significant, as it often results in the loss of your entire position and the funds used as collateral. BitMEX employs a system called Auto-Deleveraging (ADL) to handle liquidations. ADL ensures that profitable traders are not affected by the liquidations of unprofitable traders. It is important to manage your risk and use appropriate leverage to avoid liquidation on BitMEX.
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• Jaime Jean Carlos Bautista GutAug 24, 2021 · 4 years ago
  Liquidation on BitMEX can be a stressful experience, as it usually means that you have incurred significant losses. When you get liquidated, BitMEX will close your position at the bankruptcy price, which is the price at which the remaining funds in your account are exhausted. This can result in a loss greater than your initial investment. It is crucial to have a solid risk management strategy in place and to closely monitor your positions to avoid liquidation.
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• Praveen DesaiApr 25, 2023 · 2 years ago
  Getting liquidated on BitMEX can have serious consequences for your trading account. BitMEX has a liquidation engine that automatically closes positions when the mark price reaches the liquidation price. If your position gets liquidated, you will lose the funds used as collateral, and your position will be closed at the bankruptcy price. It is important to note that BitMEX's liquidation process is designed to protect the exchange and other traders from potential losses. Therefore, it is essential to carefully manage your positions and leverage to avoid liquidation.
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• Brian SpanglerJul 20, 2025 · 9 days ago
  Liquidation on BitMEX is a mechanism designed to prevent traders from incurring excessive losses. When your position gets liquidated, BitMEX will close it at the bankruptcy price, which is determined by the exchange's liquidation engine. The consequences of liquidation include the loss of your position and the funds used as collateral. It is crucial to understand the risks involved in trading on BitMEX and to use appropriate risk management strategies to minimize the chances of getting liquidated.
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• PoseNov 23, 2020 · 5 years ago
  As an expert in the field, I can tell you that liquidation on BitMEX can be a challenging experience. When you get liquidated, your position will be closed at the bankruptcy price, and you will lose the funds used as collateral. This can result in a significant loss, especially if you were trading with high leverage. It is important to understand the liquidation process on BitMEX and to use appropriate risk management techniques to protect your funds.
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• Pearla ASMar 15, 2022 · 3 years ago
  Liquidation on BitMEX is a serious matter that can have substantial consequences for traders. When your position gets liquidated, BitMEX will close it at the bankruptcy price, and you will lose the funds used as collateral. This can result in a significant loss, and it is important to be aware of the risks involved in trading on BitMEX. Make sure to use appropriate risk management strategies and to closely monitor your positions to avoid liquidation.
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• Daniel MMay 18, 2024 · a year ago
  At BYDFi, we understand the potential consequences of liquidation on BitMEX. When your position gets liquidated, you will lose the funds used as collateral, and your position will be closed at the bankruptcy price. This can result in a significant loss, and it is crucial to manage your risk and use appropriate leverage to avoid liquidation. Our platform offers advanced risk management tools to help traders protect their funds and avoid liquidation.
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