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    Why Was My Position Liquidated Despite Having A Stop Loss?
    bybit2023-12-04 13:24:42

    The main reason is likely caused by the traders' selection of a different triggering price to trigger the stop loss. 

    • Liquidation is triggered by Mark Price (Yellow Box) on Bybit
    • On the other hand, Traders are given the option to select the triggering price (The default option is Last Traded Price) for their stop loss. 
    • It is entirely possible for the Mark Price to trigger the position's liquidation price first before the Last Traded Price (Red Box) can trigger the stop loss.  

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    Therefore, depending on trading strategies, Bybit traders are given the option to select the type of triggering price to trigger their stop loss. 

    • Last Traded Price (Default option) = Represents the platform's latest trading prices when executing Buy Long or Sell Shorts orders placed by traders. 
    • Index Price = Represents the market consensus price of the underlying asset. It's derived from a weighted average of multiple spot exchange quotes, adjusted by data usability and weight adjustment factors.
    • Mark Price = Used to trigger liquidation

    To understand some of the benefits and drawbacks of using each triggering price to trigger your stop loss, please refer to the article: What are the pros and cons of using LTP or Mark Price to trigger your conditional orders?

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    How to check which triggering price was selected to trigger your stop loss? 

    Step 1: Go into your Order History

    Step 2: Select the correct trading pair

    Step 3: Check the trigger price column

    • Last = Last Traded Price
    • Mark = Mark Price
    • Index = Index Price

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    Lastly, why was the stop loss recorded as canceled? 

    In the event of liquidation, the system will cancel all active/conditional/take profit/stop loss orders and reset your Positions tab. Click here to find out more about the liquidation process. 

     
     
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