Do you have to pay for leverage liquidation in the currency circle? Will leverage owe money when playing in the currency circle?

Correspondence leveraged trading in currency circle: high returns and high risks coexist. What should you do after the liquidation?

Correspondence circle leverage trading allows investors to use borrowing funds to amplify investment returns, but it is also accompanied by huge risks and may even lead to a liquidation. So, do I need compensation after the liquidation? The answer is yes. This article will analyze in detail the compensation liability after the leverage liquidation of the currency circle and the possible financial risks it may face.

Detailed explanation of compensation for leverage liquidation in the currency circle

The liquidation of leveraged trading means that your losses exceed the funds available for your account. Compensation after a liquidation usually includes the following parts:

1. Opened position loss: Loss caused by market price fluctuations before the platform forces the position to close. This part of the loss is determined by the price difference between the opening price and the liquidation price.

2. Compulsory closing loss: Additional losses caused by closing the position at the market price when the platform forces the position to close the position. If the closing price is lower than the opening price, it will further increase your losses.

3. Free of liquidation: Some platforms will charge liquidation fees to further increase your losses.

Can leveraged trading lead to liabilities?

Yes, if your losses exceed your account balance, you will face liabilities. The following situations may occur:

1. Add margin: The platform requires you to add margin to make up for the loss, which requires you to pay immediately.

2. Forced Close: The platform automatically closes positions to limit further losses, and you will lose your remaining positions and may bear additional losses.

3. Legal Liability: If you are unable to cover your liability and breach of your contractual obligations, you may face legal action and debt collection.

In short, although leveraged trading in the currency circle may bring high returns, it is extremely risky. Before participating in leveraged trading, be sure to fully understand its risks, do a good job in risk management, operate with caution, and avoid huge economic losses caused by liquidation.

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