Glossary
Liquidation
The forced closing of a leveraged position when margin falls below the required level. It happens automatically, at the platform's discretion, and you do not get to wait for a recovery.
See also
LeverageBorrowing to hold a position larger than your capital. It multiplies gains and losses by the same factor, and shortens the distance between you and a liquidation.
MarginThe capital you put up to support a leveraged position. When losses erode it past the maintenance level, the position is liquidated.
Mark priceA smoothed reference price used to decide liquidations, drawn from broader market data rather than the last trade on one venue. It exists so a brief wick cannot liquidate everybody.
Last checked 19 Oct 2026.