Liquidation
A leveraged position being forcibly closed by the exchange or broker because of insufficient margin. In crypto, liquidation clusters act like price magnets.
The liquidation price depends on leverage and entry price: at 1:20 leverage, a move of about 5% against you wipes out the position (excluding fees).
Cascading liquidations produce violent moves; "liquidation heatmap" tools visualize these clusters. Low leverage and a real stop make liquidation a non-issue.
Related terms
Where it appears in the guides
Guides whose text uses this term; most frequent first.
- Açık pozisyon (open interest) ve fonlama verisiOrder flow & market microstructure
- Kaldıraç: dost mu düşman mı?Risk & money management
- Kripto piyasası: spot, vadeli ve fonlama oranıMarkets
- Piyasa yapıcı davranışı ve spread dinamiğiOrder flow & market microstructure
- Haber anlarında pozisyon yönetimiFundamental & macro analysis
- Kümülatif delta ile teyitOrder flow & market microstructure