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Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

In recent times, virtual currencies have frequently been on the hot search terms. Various technical terms such as Bitcoin, Ethereum, and Dogecoin have emerged one after another, dazzling everyone. Moreover, virtual machine currencies have risen and fallen frequently, especially Bitcoin. currency, the Bitcoin skyrocketing event in 2021 can be said to have attracted the attention of people around the world. However, even during the skyrocketing, some investors will find that someone will have a Bitcoin liquidation, and it is this that makes many people not sure. Investors who understand the liquidation of Bitcoin are confused, that is, why is the liquidation of Bitcoin still liquidated due to its sudden rise? Next, the editor of the currency circle will give you a detailed explanation of why Bitcoin's skyrocketing price is still liquidated?

## Why is Bitcoin liquidated even after it skyrocketed?

Bitcoin liquidation means that the deposit paid by the user when investing in Bitcoin can no longer maintain the original contract. If the deposit is not added, the investor will be liquidated, and the margin will return to zero, and Bitcoin will liquidate, thus making investment more difficult. suffered heavy losses. Liquidation refers to the situation where the customer's equity in the investor's margin account becomes negative under certain special conditions.

Bitcoin has skyrocketed, and some people have liquidated their positions, because those who liquidated their positions are those who were short-selling. These people borrowed some Bitcoins from the platform and sold them, expecting the price of Bitcoin to fall, and then repurchased them to earn the difference, but they did not expect that Bitcoin would soar. If you just go short, it won't skyrocket. The key is to increase leverage.

## Inventory of reasons for Bitcoin liquidation

The first type is that you don’t know or never calculate the proportion of your funds available, and the position is full when you open it. Most people make this kind of problem. Before you open a position, you need to know how much risk you will take. Your risk is equal to how much money you have to lose. You have to remove the part of the money that you may have to lose first, and do not count it in your capital. In this way, you will not open so many positions and your position will not be full. When the market fluctuations are opposite to those of your position, you will not be liquidated.

The second type is that there are too many types of positions and contracts, and many varieties and contracts in the market move in the same direction at the same time, resulting in a rapid decline in account equity and eventual liquidation. This problem arises because you have not considered that the varieties on the market will converge. When you hold too many varieties, your account funds will be occupied. Once the varieties and contracts you hold move in the opposite direction of the order, your account will be depleted. The retracement is too large, resulting in insufficient available funds to close the position.

Type 3: Securities and futures companies and exchanges temporarily increase margin ratios before closing on holidays, long holidays, etc. However, if you do not add more margin, your available funds may have reached the highest level after closing; opening after holidays will be affected by the external market during the holiday. The impact will fluctuate violently, causing your available funds to be negative, and eventually your position will be liquidated. This kind of problem may be that the fluctuation of the external market during the holidays will not be that big, or it will fluctuate in the direction of the position, but the opposite is true. Be prepared to reduce your positions during holidays. The external market has a great impact on the internal market. Some sudden news events are most likely to affect the market. So you need to reduce the risk of volatility for yourself.

The above is the relevant content about why Bitcoin’s positions are liquidated due to the sudden rise. Finally, the editor of the currency circle wants to tell you that in the process of Bitcoin investment, you must avoid the occurrence of Bitcoin liquidation, so you must stop losses. Generally speaking, you should combine the stop loss position with your own position adjustment, and also with your own operating cycle. If you are doing mid-line operations, the stop loss should be slightly larger, usually around 150 points. For short-term operations, the average stop loss The loss level is around 40 points. Divide the invested funds into 3 parts, one to open a trial order and two to increase the position midway. In the specific operation process, use a small amount of funds and make appropriate short-term moves. Don't cover it to the end, but stop the technology. Combining loss and capital stop loss.