Enhancements to BTSE’s Liquidation Process for Better Position Protection

Written by BTSE

May 10, 2023

Enhancements to BTSE's Liquidation Process for Better Position Protection

BTSE has implemented significant updates to its liquidation process in order to offer enhanced protection to users’ positions. By introducing partial liquidation and forced market buy/sell mechanisms, the platform aims to minimize potential losses and maintain stability during liquidation events.


What Is Partial Liquidation?

Partial liquidation is a new approach that involves closing or reducing only a portion of a trader’s position to satisfy maintenance margin requirements, instead of completely liquidating the entire position. This strategy serves to protect the trader’s margin balance from turning negative, while still preserving a portion of their original position in the market. As a result, traders may experience reduced losses during liquidation events.


What Is Forced Market Buy/Sell and Why Does It Happen?

Forced market buy/sell is another new mechanism that the trading system automatically initiates to execute a buy/sell market order on behalf of the trader. This process aims to convert unrealized profits from other positions into realized gains. Forced market buy/sell typically comes into play when a trader’s position faces the risk of liquidation due to insufficient margin or unmet maintenance margin requirements. This mechanism is designed to mitigate losses, protect the trader’s remaining margin balance, and ensure the stability of the trading platform.


A Word from the Team

The addition of partial liquidation and forced market buy/sell mechanisms to BTSE’s liquidation process demonstrates the platform’s commitment to safeguarding users’ positions during liquidation events. By minimizing losses and enhancing position protection, BTSE continues to strive for an improved trading experience for its users.


Trade futures on BTSE here.


Our aim is to create a platform that offers users the most enjoyable trading experience. If you have any feedback, please reach out to us at feedback@btse.com or on Twitter @BTSE_Official.

Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.

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