Liquidation
Ayrıca şöyle bilinir: Forced Liquidation, Position Liquidation
The automatic closing of a leveraged trading position when the trader's margin falls below the required maintenance level.
Liquidation occurs when a leveraged trading position is forcibly closed by an exchange because the trader no longer has sufficient margin (collateral) to maintain the position. This happens when the market moves against the trader's position beyond a certain threshold.
How Liquidation Works:
- Trader opens leveraged position with margin
- Market moves against the position
- Unrealized losses reduce available margin
- When margin falls below maintenance requirement, liquidation triggers
- Exchange closes position, trader loses margin
Key Terms: - Leverage: Borrowed funds to increase position size (e.g., 10x leverage) - Margin: Collateral required to open and maintain a position - Maintenance Margin: Minimum margin required to keep position open - Liquidation Price: Price at which position will be liquidated
Example (simplified): - $1,000 margin with 10x leverage = $10,000 position - If price drops 10%, position loses $1,000 - Entire margin wiped out, position liquidated
Types of Liquidation: - Partial Liquidation: Only part of position closed to restore margin - Full Liquidation: Entire position closed
Avoiding Liquidation: - Use lower leverage - Set stop-losses before liquidation price - Add more margin when position is at risk - Monitor positions actively
Liquidation events can cascade, causing rapid price movements as large positions are force-closed in succession.