Dossier
negative equity
Coverage of negative equity in the Nexus archive.
- Fear of negative balance/debt on leverage: Can I lose more than 100% of my principal?
A trader seeks clarification on the risks of leveraged Bitcoin trading, specifically whether negative equity and deficit situations are possible if an exchange fails to liquidate a position quickly during rapid market crashes. The user confirms they understand the risk of losing their entire principal but are concerned about owing money to the exchange.