Crypto
What is Liquidation?
The forced closing of a leveraged position when the margin is no longer enough to cover its losses.
When the price moves against a leveraged trader far enough, the exchange closes the position automatically. A wave of liquidations can push the price further, which triggers more of them.
Our Liquidation War page shows estimated liquidation levels and every real liquidation as it happens.
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Definitions are general and are not investment or tax advice.