Liquidation
A liquidation is when an exchange force-closes a leveraged position because its losses reached the collateral.
Why it matters
Waves of liquidations can push prices sharply further in the same direction.
Watch the live whale radarRelated terms
LeverageLeverage lets you trade with borrowed money, for example 10x means a 1% move changes your …MarginMargin is the collateral you put up to open a leveraged trade.…Perpetual futures (perps)Perps are futures contracts with no expiry date that let traders bet on prices going up (l…
Written by the VaultX AI team. Educational only, not investment advice.
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