Declining interest in Bitcoin margin futures promises less price volatility – CoinDesk

A trader essentially suffers a loss on the collateral and the futures contract. Thus, margin requirements increase at a faster rate with falling prices, and longs are liquidated relatively quickly. This, in turn, puts additional downward pressure on the market, leading to a deeper drop, also known as elimination of leverage, like that seen in May. Long liquidation refers to the forced closing (forced sale) of bullish positions due to lack of margin.

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