Fear of negative balance/debt on leverage: Can I lose more than 100% of my principal?
I'm looking into trading Bitcoin with some leverage, and I want to make sure I fully understand the worst-case scenario regarding liquidations.
To be absolutely clear: I am 100% fine with my position going to zero. I am willing to take the risk of losing my entire initial margin/principal.
However, what absolutely terrifies me is negative equity (deficit risk). If the market gaps down or crashes incredibly fast, and the exchange fails to liquidate my position in time, can I actually end up owing money to the exchange?
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