When it comes to cryptocurrency exchanges, one of the most popular platforms is Binance. As such, it’s important for users to understand all aspects of the platform – including the liquidation price.
So, what is liquidation price on Binance? Simply put, the liquidation price is the price at which a position is automatically closed by the system in order to prevent further losses. This price is typically set at around 110% of the original price.
For example, let’s say that you bought Bitcoin at $10,000 and placed a stop-loss at $9,900. If the price of Bitcoin then fell to $9,800, your position would be automatically closed by the system in order to prevent further losses.
The liquidation price is designed to protect users from incurring too much debt on their positions.
NOTE: WARNING: Trading with liquidation prices on Binance can be highly risky. Prices can change extremely quickly and if you are not familiar with the system, you could end up losing more than you bargained for. Make sure you understand how the system works before engaging in any trades.
Of course, it’s important to note that the liquidation price is not always accurate. There have been instances where the liquidation price has been triggered even though the price didn’t actually fall that low.
As such, it’s important to use stop-loss orders carefully and always be aware of the risks involved.
All in all, the liquidation price on Binance is a safety measure that is designed to protect users from incurring too much debt on their positions. It’s important to understand how this system works before using it, as there are some risks involved.
However, overall, it’s a useful tool that can help you limit your losses in case of a sudden market crash.
6 Related Question Answers Found
Binance is a cryptocurrency exchange that was founded in 2017. The company is based in Malta and has offices in Tokyo, Hong Kong, and Singapore. Binance offers a platform for trading cryptocurrencies.
When it comes to cryptocurrency trading, one of the most important things to keep track of is your profit and loss (P&L). In this article, we’ll show you how to calculate P&L in Binance, one of the world’s largest cryptocurrency exchanges. First, let’s start with some basics.
Binance is a cryptocurrency trading platform that allows for the exchange of digital assets. The minimum trade on Binance is 0.001 BTC. This is the equivalent of about $10 at current prices.
Binance is a cryptocurrency exchange that launched in July 2017. The company is based in China but has an office in Tokyo, Japan. Binance is the world’s largest cryptocurrency exchange with a daily trading volume of $2.
4 billion.
Binance Coin (BNB) is the native cryptocurrency of the BinanceChain blockchain and is used to pay fees on the Binance Exchange. BNB was originally issued as an ERC20 token on the Ethereum blockchain but has since been migrated to BinanceChain. The total supply of BNB is capped at 200 million and there will never be more than this amount in circulation.
Binance, one of the world’s largest cryptocurrency exchanges by trading volume, has a tiered fee structure for withdrawals. The fee is based on the currency being withdrawn, with a minimum fee of 0.0005BTC. For example, the withdrawal fee for Bitcoin (BTC) is 0.
0005 BTC, while the withdrawal fee for Ethereum (ETH) is 0.01 ETH.
