So if i open a long position and the price goes down enough i will get liquidated ofcourse. But i noticed if i open a 50$ long and have a 250$ balance it will give a way higher liquidation price compared to only having 50$ balance. Does this mean binance will use my balance in order to keep the position open ? Is there a way to turn this off?
I am used to bitmex which is only liquidating my original investment and not using my balance.


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4 Comments

  1. jtlexington on 9. December 2019 at 1:50

    I’m not 100% sure the answer, but one idea to prevent it for now (or permanently) would be to move what you don’t want at risk to the exchange or margin wallet. I’m pretty sure they don’t “cross over’ so only what you have in the futures wallet is at risk.

     


  2. official_Cyril on 9. December 2019 at 1:50

    If you don’t want any fund to be a risk of liquidation, it should not be in futures funds. If it is, you may close position or set stop losses to keep a perimeter on how far you are willing to lose if market moves against your position.

     


  3. rezivor on 9. December 2019 at 1:50

    Its because they use cross margin. So ALL of your money will get liquidated. But it allows you more wiggle room to open up a higher leveraged long. I recommend always setting a stop, at the very least, about 10 dollars above your liquidation price, or where ever you want to put it, but they do stop hunt. With high leverage, wait for the right moment, make your trade, and keep the market close position open and ready to hit in case anything turns against you.

     


  4. rezivor on 9. December 2019 at 1:50

    If you have 200 in your futures wallet, and you go 125x with 50 dollars worth. You will have quite a large bit of room until liquidation. But that larger room means your entire future balance gets liquidated in the result of a liquidation on it. But not your ENTIRE binance balance or even your margin trade balance. Just wats in the futures platform