Crypto glossary
Liquidation
A forced position closure when available margin no longer meets requirements.
What Liquidation means
A forced position closure when available margin no longer meets requirements. The practical meaning depends on the market, contract and exchange rules. Traders should confirm order behaviour and fees before relying on this concept.
Example
A simplified example can help explain the term, but an example is not a recommendation or a prediction.
Risk reminder Crypto trading involves substantial risk. Results are not guaranteed. Volatility, fees, funding, liquidity and slippage can affect outcomes.