
Understanding liquidations in perp markets
Perps take trading to the next level. With leverage, flexibility, and the ability to speculate on ups and downs, more and more traders are jumping into the perp game with the hopes of reaping the benefits. But trading perps comes with risk and one of the most important risks to understand is liquidation. If you’re trading perps, knowing how and why liquidations happen can make or break your trading experience. In this blog we will unpack the mechanics of liquidations, the role of margin trading,