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Crypto Glossary

Confused about crypto terms? We got you covered!

L

Liquidation

Liquidation is the process of closing out a leveraged position when the asset's price moves against the trader's position to the extent that the margin or collateral deposited is insufficient to cover the loss. In other words, it is the forced closure of a trader's position by the exchange or broker to prevent further losses beyond the trader's margin or collateral.

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