Leveraged tokens and liquidation

leveraged tokens and liquidation : When leveraged tokens get liquidated ?

Leveraged tokens and liquidation : The question of liquidation in leveraged tokens listed on Binance such as BULL, BEAR, ETHBEAR, ETHBULL, EOSBULL,EOSBEAR, XRPBULL, XRPBEAR is the most popular matter about FTX leveraged tokens. Traders wonder whtether leveraged tokens get liquidated or not similar to margin trading.

While it is not completely impossible for leveraged tokens to get liquidated, there is always a risk of liquidation. However this happens only if the market goes up or down instantly by more than %50.

In other cases, leveraged tokens do not get liquidated as they function as standart spot market tokens.

For example ; if you buy 25 ETHBEAR, you will always have 25 ETHBEAR to keep until the price moves in the direction you expect.

For more details on leveraged tokens, take a look at these : Binance bull and bear tokens , Facts about leveraged tokens

About Eda Candan 253 Articles
Journalist, Reporter based in Turkey

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