Just in case that explanation wasn't clear enough, if you bought 1 BTC at a 2X leverage when BTC was $10k in October last year and rode it all the way up to $65k and you had something like $120k BTC at that point, would you then have been liquidated when BTC dropped over 50% to $29k or would your BTC have just gone down to the same as it would have been at $29k on the way up?
Is it possible that somebody could confirm which of these is correct please?
Thanks
Because when you enter, you basically borrow 50% of your capital in usd to buy 1 btc (eg you use 2x leverage), then the liquidation benchmark is the same as the position when you enter. That is, you will be liquidated if the btc hits $5k.
BTC @$10k = $5k yours and $5k from the broker. So it doesn't matter what the percentage increase in btc is, because here you don't bear the liquidation of 1 btc, but 5k usd.
cmiiw