What are the factors that determine the liquidation price on BitMEX?

1 answers

• Ojas PatelApr 05, 2022 · 4 years ago
  The liquidation price on BitMEX is determined by a combination of factors. One of the key factors is the initial margin requirement, which is the amount of collateral required to open a position. The higher the initial margin requirement, the lower the liquidation price. Another factor is the mark price, which is the average of the spot price from multiple exchanges. BitMEX uses the mark price to calculate the unrealized profit and loss of a position, and the liquidation price is based on this calculation. Additionally, the leverage used in the position also affects the liquidation price. Higher leverage increases the risk of liquidation, as it amplifies both profits and losses.
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