In futures trading, liquidation occurs when your margin balance is insufficient to keep your position open. This usually happens when the market moves against your position, and your losses approach the funds you've allocated (your margin). High leverage in crypto futures increases this risk and triggers an automatic closure to stop additional losses.
What is liquidation in futures trading? Print
Created by: Himanshu Dwivedi
Modified on: Thu, 29 May, 2025 at 5:08 PM
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