β€οΈAccount Health
Liquidation Essentials
Liquidations on Core occur when market moves cause a traderβs equity balance to drop below the maintenance margin, forcing the closure of all positions by a third-party liquidator. Coreβs cross-margin approach means the equity balance reflects the total account, and liquidation affects the entire balance. For targeted risk management, isolated sub-accounts are an option.
Account Monitoring
The 'Account Overview' on Core provides vital indicators for monitoring account health, including dynamic estimates of liquidation prices, crucial for assessing risk levels.
Liquidation Dynamics
Core's estimated liquidation prices are inferences, subject to change with account and market dynamics. Since the platform uses cross-margining, the primary focus should be on the equity balance to prevent account-wide liquidation.
Health and Margin
'Account Health' is a percentage indicating the margin of safety before liquidation, calculated by comparing the equity balance to the maintenance margin. The CVA or maintenance margin is key to preventing liquidation, with its amount depending on the tradeβs leverage and size.
Equity and Management
'Equity balance', including unrealized profits and losses, reflects financial health. Monitoring this balance against the CVA is crucial to avoid liquidation. The 'Remaining Equity to Liquidation' indicator helps gauge the distance from liquidation, offering a clear picture of financial leeway.
Funds Allocation
Core distinguishes between locked margin and funds available for trading, guiding traders on managing their resources effectively for balance and opportunity.
Conclusion
Effective management of account health and margins is crucial on Core. By monitoring these metrics, traders can navigate risks and leverage opportunities in the market with informed strategy and precision.
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