In-depth analysis and buying Bitcoin. Can liquidated positions be recovered?

The price of Bitcoin has experienced significant growth in the past few years, attracting the attention of many investors. Currently, many people regard Bitcoin as an investment asset and hope to obtain long-term investment returns by purchasing Bitcoin. However, participation in the Bitcoin market is not something that just a novice can easily complete. It requires investors to have a certain amount of knowledge. For this reason, the exchange has launched a Bitcoin copying model to help novices invest in Bitcoin. But whether you are a novice or an experienced trader, you are afraid of having your position liquidated. Some people may be curious, can you recover your liquidated position if you buy Bitcoin? In fact, it is not possible. Xiaobai will explain it in detail below.

Can I get my money back if my position is liquidated after buying Bitcoin?

If you buy Bitcoin and divide the position, it is not recoverable. After the Bitcoin is divided, it will be difficult for investors to find the responsible party to make a claim. Once a Bitcoin transaction is completed, it cannot be reversed or refunded, and once an investor purchases Bitcoin and the price drops, a loss will be incurred. Therefore, when purchasing Bitcoin, investors should treat risks rationally and allocate their funds reasonably to avoid losses caused by over-investment. At the same time, investors should choose a Bitcoin trading platform with a good reputation to reduce risks.

If you want to obtain higher profits by following orders, it is very important to keep the settings consistent with the trader. The two settings of single investment and maximum copying amount are closely related. For users with fixed margin copying, they need to ensure that the maximum copying amount/single investment > the trader’s position opening level. It is not known the trader’s position opening level. You can check the trader's profile or communicate with the trader.

In the proportion of copying users, the maximum copying amount/single investment = the total ordering funds of the ordering staff. This can better follow the trader's strategy, seize market opportunities, and the overall profit and loss of the copying will also be Get closer to traders.

The requirements for purchasing Bitcoin are that the currency pair with a single user needs to be consistent with the trader, and the settings should avoid high leverage greater than 20%. The margin model also needs to be consistent with the trader. If the trader with an order holds a full position or a single position, it will be a full position, and if the trader with an order holds a position on an isolated basis or a single position, it will be an isolated position. The same applies to stop-profit and stop-loss, but novice users do not need to operate the settings unless they have special needs, and can just keep the default settings.

What are the reasons for liquidation when buying Bitcoin?

The reasons for Bitcoin liquidation are usually related to leverage trading. Leveraged trading is a trading method that magnifies investment returns by borrowing funds, allowing traders to trade without actually holding funds. Liquidation usually occurs in the following four situations: leveraged traders trade without actually holding funds, and when prices experience extreme fluctuations, traders are unable to meet margin requirements, leading to liquidation.

1. Market volatility:

When market prices fluctuate violently, the value of the position may fall rapidly, resulting in insufficient account funds to maintain the trading position. This may result in forced liquidation by the trading platform to prevent the account from being depleted of funds. In order to avoid such risks, the liquidation rules of the trading platform should be enforced to ensure that the account funds are not reduced.

2. Excessive leverage:

Excessive use of leverage multiples may increase the risk of liquidation. If the value of a trading position drops above the leverage level, the trading platform may perform a forced liquidation operation to reduce the account's losses.

3. No stop loss set:

If the trader does not set a suitable stop loss price, when the market price drops, the value of the position may decrease rapidly, resulting in insufficient funds in the account. Support leveraged positions.

4. Insufficient margin:

If a trader’s margin level drops below the minimum requirements stipulated by the trading platform, the trading platform may forcefully close the trading position to prevent insufficient funds in the account.

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