By pictures-of-money Most centralised exchanges that allow leveraged trading make use of an insurance fund to help manage liquidations on their exchange. Typically, to trade a certain size requires an initial margin amount in a user’s account. As the price of the instrument varies, the exchange monitors each user’s position and requires that the user maintains a
An insurance backstop
An insurance backstop
An insurance backstop
By pictures-of-money Most centralised exchanges that allow leveraged trading make use of an insurance fund to help manage liquidations on their exchange. Typically, to trade a certain size requires an initial margin amount in a user’s account. As the price of the instrument varies, the exchange monitors each user’s position and requires that the user maintains a