Forced Liquidation

◆ Forced Liquidation

“Forced Liquidation” refers to a situation when a position is closed because the net value is lower than the required level.

1. Under the condition where “Maintenance Margin≤0.5%*Notional Value of a Position Opened”, “Forced Liquidation” could happen to prevent further losses for the trader.

2. DB Contract is excluded from the aforementioned “Notional Value of a Position Opened”.

3. Maintenance Margin=Net Value-Margin used in DB.

◆ No Negative Balance

1. During high crypto market volatility, a negative balance should have occurred when forced liquidation takes place. However, BEX500 does NOT require the trader to pay back negative balances at this stage to safeguard better trading.

2. Nevertheless, in an extremely volatile market, where forced liquidations cannot be executed in the market, ADL (Auto Deleveraging) can be employed. please refer to ADL for more detail


Want more practice? Try a demo with our gift

5000 USDT
Contact us
twitter Telegram

Technical support: [email protected]

Risk Warning The Financial Products offered by the company include Contracts for Difference ('CFDs') and other complex financial products. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because it is possible to lose all of your invested capital. You should never invest money that you cannot afford to lose. Before trading in the complex financial products offered, please understand the risks involved.

© 2019 Bex500. All rights reserved.

Log in
Google 2-step Verification

Forgot Password Reinstall Google 2FA

Haven't got an account?Register now
Find Password
60sec. reacquire
Sign up
60sec. reacquire
Service terms and Privacy policy
Have an account?Sign in