Trying to learn the ropes on perp trading and don’t quite understand what happens at liquidation price. I know it’s risky. Just testing things to understand.
If I open a position using $X while having a wallet balance of $5X and the price reaches liquidation do I lose $X or $5X?
I feel unsure on the outcome because if I increase my wallet balance to $10X the liquidation price of open position gets further away from the mark price.
Is my entire balance at risk if liquidated or is the max loss the original position value? Thanks
submitted by /u/lunds11
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