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Liquidation and leverage: 21 articles
What leverage actually leaves you, and where the line sits.
Trading a soxl perp exposes positions to double leverage dragTrading a soxl perp combines 3x daily ETF reset decay with perpetual swap funding rates that…The hidden costs of crypto trading erode capital through funding spreadThe hidden costs of crypto trading can double entry friction on high leverage perp positions…Mark price vs last price liquidation prevents wick liquidations on perpsPerpetual exchanges trigger liquidations using mark price, not last traded price, preventing…Holding perpetual futures vs spot costs more after fundingA long BTC perpetual position at 0.0100% 8-hour funding costs 10.95% of notional value…How a crypto liquidation cascade works across perpetual swap order booksA crypto liquidation cascade accelerates when forced taker orders consume bid depth, driving…Leverage crypto futures explained by distance to liquidationAt 25x leverage, a position reaches liquidation on a 4.00% adverse price move, compared to…Proper position sizing crypto futures limits your loss before setting leverageSizing a perpetual position by venue leverage instead of absolute risk moves your liquidation…Liquidation price is arithmetic — here is the formulaLiquidation is a margin equation, not a punishment. For an isolated-margin long: liq_price ≈…How far from liquidation you are depends on volatility not priceA 5% price buffer at 20x leverage represents less than one daily standard deviation of price…
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How mark price vs last price liquidation triggers stop cascading wicksLiquidations trigger off mark price calculation, which smoothed out a 0.0225 percentage point…Headline cash-and-carry yields fall by half after fees and margin splitHeadline funding rates mask execution fees, capital fragmentation across venues, and short…Market Orders Eat Thin Books When Liquidation Engine Triggers ADLForced market orders trigger liquidation cascades when mark price updates push maintenance…At 25x Leverage a 4 Percent Price Move Triggers LiquidationIncreasing leverage from 3x to 25x shrinks the adverse price movement required for position…Sizing Positions by Fixed Dollar Loss Caps Portfolio DrawdownSizing perpetual positions by leverage defaults risk to venue limits, while fixed dollar…Distance to Liquidation Expires Faster Than Price Points IndicateLiquidation is a time-dependent probability where leverage and funding decay erode your price…Liquidations Trigger on Mark Price to Stop Whipsaw LossesPerpetual swaps liquidate positions based on index-smoothed mark price rather than volatile…High-leverage wins mask cluster liquidations across venuesPublic liquidations reveal widespread account wipes occurring simultaneously alongside social…Higher Leverage Shifts Liquidation Risk From Price Distance to TimeAt 50x leverage, a 1.5 percent price drop triggers liquidation, turning routine daily…Mark Price Triggers Liquidations Instead of Last Traded PriceMark price calculations prevent order book wicks from triggering liquidations by linking…Exchange Liquidation Feeds Reveal Friction Costs and FailuresPublic market data shows cluster liquidations, fee drag, and survivorship bias limit long-term…Leverage Turns Static Liquidation Price Targets Into Time DecayAt 20x leverage, a 4.5% price move liquidates equity, but cumulative funding payments and…