Quote from: JeromeTash on November 09, 2022, 09:57:57 PM

I don't think one trading inverse contracts gives them a more likelihood of their position getting liquidated as compared to a position of a linear contract. It has more to do with the rise and fall in the value of the underlying crypto asset, which translates to more or less profits in USD quoted from the base currency.

Yes, I meant it. At least people must choose an asset that can give them a most stable collateral value. Nothing is perfect if they choose one cryptocurrency as a collateral even it is Bitcoin. Even stable coins can lose their values like $UST.

But if I choose between Bitcoin / altcoins and stable coins for my collateral, I will choose a stable coin but that one should be a good one.

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Using people's money as collateral even with stablecoins can still fuck things up if the market goes against the opened positions. Stablecoins do make the positions bulletproof from liquidation. The problem is too much greed by the so-called exchanges.

It is right. Having your position against the market movement, market trend will kill you. Whatever collateral type won't be able to save you if you get such positions.

I implied about the risk of liquidation because of your collateral gets serious loss in its value that will put your position in liquidation risk even it is not too bad.