Bitget CFD Margin Levels, Liquidation Thresholds, and Position Risk
Summary
The guide explains a CFD account model in which margin level is calculated by dividing equity, including unrealized profit and loss, by the margin allocated to open positions. It says liquidation is triggered when that level reaches the stated 50% threshold, rather than at a single estimated liquidation price. For accounts with several positions, it describes closing the position with the largest floating loss first, then recalculating the account level and repeating if necessary.
The article recommends monitoring margin level, limiting leverage and total exposure, using stop-losses, and reducing positions before volatile events. It contrasts this approach with crypto perpetual futures and notes that slippage can make execution differ from displayed quotes. These are platform-specific mechanics and rules as described by the article; they should not be assumed to apply to other brokers. The risk guidelines are general suggestions, not tested guarantees against liquidation.
Key ideas
- Margin level is calculated as account equity divided by used margin, expressed as a percentage.
- The guide says liquidation starts when the CFD margin level falls to 50% or below.
- When several positions are open, the position with the largest floating loss is liquidated first, with the level recalculated after each closure.
- Monitoring account margin level can be more informative than relying on one estimated liquidation price for a multi-asset account.
- Leverage, exposure, stop-losses, and event-related position reductions are presented as risk controls.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.