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Glossary

Liquidation(Liquidation)

The forced closure of a leveraged position by the exchange/broker due to insufficient margin. In crypto, liquidation clusters act like a price magnet.

Also written as: likidasyon · likide

The liquidation price depends on leverage and entry price: at 1:20 leverage, roughly a 5% adverse move ends the position (excluding fees).

Cascading liquidations produce sharp moves; "liquidation heatmap" tools visualise these clusters. Low leverage and the use of a real stop make liquidation entirely unnecessary.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.