How does liquidation work on BitMEX?

3 answers

• Andrei OnisoruJun 15, 2026 · 11 days ago
  Liquidation on BitMEX occurs when a trader's position reaches the liquidation price. This happens when the mark price of the contract falls below the bankruptcy price. When a position is liquidated, it is forcefully closed by the exchange, and the trader's margin is used to cover the losses. This is done to prevent the trader from losing more than their initial investment. It's important to set appropriate stop-loss orders to avoid liquidation.
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• amarosDec 13, 2020 · 6 years ago
  When a position is liquidated on BitMEX, the trader's position is closed at the bankruptcy price. The exchange uses the trader's margin to cover the losses incurred. Liquidation can occur when the market moves against the trader's position, causing the mark price to fall below the liquidation price. It's crucial for traders to manage their risk and use appropriate leverage to avoid liquidation.
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• Ronaldo AlmeidaSep 27, 2025 · 9 months ago
  Liquidation on BitMEX is an automated process designed to protect both traders and the exchange. When a position is liquidated, the trader's margin is used to cover the losses. This ensures that traders cannot lose more than their initial investment. BitMEX has a sophisticated liquidation engine that calculates the liquidation price based on the mark price and the trader's leverage. It's important for traders to understand the liquidation process and set appropriate risk management strategies to avoid liquidation.
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