How Liquidation Works and When It Happens

This lesson is for enrolled learners

The concept Liquidation is the forced, automatic closure of a leveraged position when your losses consume enough of your posted margin that the exchange can no longer guarantee your counterparty gets paid. It isn't arbitrary — every leveraged position has a maintenance margin requirement, typically expressed as a percentage of notional value (e.g., 0.5% for BTC, higher for smaller-cap, more……

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