To find out how much the market has to move against you before you’re liquidated, the general formula is: Liquidation % = 100/leverage. So, for example, if you are leveraged 50x, the market only needs to move against you by 2% to liquidate your position (100/50 = 2). In the highly volatile crypto space, that means you run an incredibly high risk of being liquidated and losing your invested capital.
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