How does liquidation work on the KuCoin exchange?

3 answers

• j with a green backroundSep 05, 2024 · a year ago
  Sure! When it comes to liquidation on the KuCoin exchange, it refers to the process of closing out a leveraged position when the margin level falls below the required threshold. This is done to prevent further losses and protect the lender's interests. The exchange will automatically sell the trader's assets to repay the borrowed funds. It's important to be aware of the risks involved with leveraged trading and to carefully manage your positions to avoid liquidation.
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• Michał BizielMar 30, 2023 · 3 years ago
  Liquidation on KuCoin is a mechanism designed to maintain the stability of the platform and protect traders from excessive losses. When a trader's margin level drops below the liquidation threshold, their position will be automatically closed by the exchange. This ensures that the lender is repaid and prevents the trader from accumulating more debt. It's crucial for traders to monitor their margin levels and set appropriate stop-loss orders to avoid liquidation.
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• leahFeb 05, 2025 · 9 months ago
  As an expert in the field, I can tell you that liquidation on the KuCoin exchange is a standard practice in leveraged trading. When a trader's margin level falls below the liquidation threshold, the exchange will initiate the liquidation process. This involves selling the trader's assets at the prevailing market price to repay the borrowed funds. It's important for traders to understand the risks involved and to use leverage responsibly to avoid liquidation.
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