A venue sets it so that it never has to absorb a loss itself, cutting the position before the money hits zero. The more leverage, the closer the line. At ten times leverage it sits around 5%, so a 5% fall starts liquidation, and a program executes it immediately with no room for human judgment.
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Awaiting gradingWhy did a single SK hynix share printing at the daily floor close out 960 accounts?Score by the end of August: if trade.xyz changes its price calculation from a single venue's fill to a blend of venues or a time average as it said it would, this counts as one operator's setting, and if the method is unchanged it counts as a structural feature of such markets.