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Leverage, Margin & Liquidation Explained 2026: How Not to Get Liquidated
The first time we got liquidated, the market barely moved. We were holding a 20× long on Margex, the price dropped about 4% on a quiet afternoon, and the position vanished — margin gone, with a small liquidation fee on top. The trade thesis was not even wrong; the leverage was. Since 2021 we have run leveraged positions across Margex, BloFin, and dYdX, and the two most expensive lessons were both about liquidation: how little price movement it takes at high leverage, and how funding can quietly drain a position toward its liquidation price over a single weekend while you sleep.
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