3 Things to Know About BTC Futures and Crypto Exchange Liquidation Engines
Cointelegraph
Published Jun 21, 2020 07:33PM ET
Updated Jun 21, 2020 09:20PM ET
Most traders fail to understand how Bitcoin (BTC) derivatives exchanges handle their risk. There is a consensus that the winners get paid by the losing parties, but it is not as simple as it seems.
Insurance funds were initially designed to protect clients positions during excessive volatile periods. Nonetheless, some exchanges such as BitMEX display a relatively steady insurance fund hoarding despite significant hourly price swings of 10% or higher.
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Written By: Cointelegraph
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