Huobi’s derivatives trading platform, Huobi DM, has announced a new ‘partial liquidation’ feature that aims to limit trading losses.
Sudden market swings can immediately liquidate highly leveraged positions and cause extensive user losses, as seen during the last week’s Bitcoin price crash.
The platform’s new liquidation mechanism will jump into action when markets face turbulence to mitigate the impact on traders, Huobi said in a statement.
Crazy market times cause issues
Amid recent coronavirus fears and market uncertainty in stocks and crypto, asset prices have seen violent swings. Between March 12 and 13, Bitcoin dropped more than 50% in value before bouncing off the bottom.
During the crash BitMEX saw liquidations top half a billion dollars in an hour. It also went offline, which some users claim resulted in unnecessary liquidations. It blamed denial-of-service (DDoS), attacks as the culprit. Read More...