What happens to a trader's position when they receive a margin call on BitMEX?

6 answers

• NathanSlossNov 15, 2022 · 3 years ago
  When a trader receives a margin call on BitMEX, it means that their account balance has fallen below the required maintenance margin level. In this situation, BitMEX will liquidate a portion or all of the trader's position to cover the losses and bring the account balance back to an acceptable level. This liquidation process is known as an auto-deleveraging (ADL) event. The specific amount of the position that gets liquidated depends on the size of the margin call and the available liquidity in the market. It's important to note that the liquidation price may not be exactly at the margin call price, as it depends on market conditions and available orders. After the liquidation, the trader's position will be closed, and any remaining account balance will be used to cover the losses. It's crucial for traders to monitor their margin levels closely and manage their risk to avoid margin calls and potential liquidation events on BitMEX.
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• Anjali OzaAug 24, 2020 · 5 years ago
  When a trader receives a margin call on BitMEX, it's a sign that their account is in a risky position. BitMEX has certain margin requirements to ensure that traders have enough collateral to cover potential losses. If a trader's account balance falls below the required maintenance margin level, BitMEX will issue a margin call. This means that the trader needs to either add more funds to their account or close some of their positions to increase their margin. If the trader fails to meet the margin call within a specified time frame, BitMEX will automatically liquidate a portion or all of their position to cover the losses. This can result in significant losses for the trader. It's important for traders to carefully manage their positions and maintain sufficient margin to avoid margin calls and potential liquidation events.
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• LonerApr 19, 2021 · 4 years ago
  When a trader receives a margin call on BitMEX, the situation can be quite stressful. As a trader, you need to act quickly to either add more funds to your account or close some of your positions to meet the margin requirements. If you fail to do so within the given time frame, BitMEX will step in and liquidate a portion or all of your position. This can lead to significant losses, as the liquidation price may not be in your favor. It's crucial to have a solid risk management strategy in place and closely monitor your margin levels to avoid margin calls and potential liquidation events on BitMEX.
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• Mihir Ranjan SahuSep 01, 2024 · a year ago
  When a trader receives a margin call on BitMEX, it's important to understand the implications. BitMEX has specific margin requirements to ensure the stability of the platform and protect traders from excessive losses. If a trader's account balance falls below the required maintenance margin level, BitMEX will issue a margin call. This means that the trader needs to either add more funds to their account or close some of their positions to increase their margin. If the trader fails to meet the margin call, BitMEX will step in and liquidate a portion or all of their position. This liquidation process aims to cover the losses and bring the account balance back to an acceptable level. It's crucial for traders to be aware of their margin levels and manage their positions effectively to avoid margin calls and potential liquidation events on BitMEX.
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• Pooja KulkarniApr 20, 2023 · 2 years ago
  When a trader receives a margin call on BitMEX, BYDFi, a well-known digital currency exchange, follows a specific protocol to handle the situation. BYDFi will first notify the trader about the margin call and provide a specified time frame to meet the margin requirements. If the trader fails to do so, BYDFi will automatically liquidate a portion or all of their position to cover the losses. This ensures the stability of the platform and protects both the trader and BYDFi from excessive risks. It's important for traders to understand the margin requirements and closely monitor their positions to avoid margin calls and potential liquidation events on BYDFi or any other digital currency exchange.
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• Sahl JacobsSep 21, 2020 · 5 years ago
  When a trader receives a margin call on BitMEX, it's crucial to take immediate action. BitMEX has specific margin requirements to maintain the stability of the platform and protect traders from excessive losses. If a trader's account balance falls below the required maintenance margin level, BitMEX will issue a margin call. This means that the trader needs to either add more funds to their account or close some of their positions to increase their margin. If the trader fails to meet the margin call, BitMEX will automatically liquidate a portion or all of their position. This can result in significant losses for the trader. It's essential for traders to have a solid risk management strategy in place and closely monitor their margin levels to avoid margin calls and potential liquidation events on BitMEX or any other digital currency exchange.
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