Liquidation

Forced closing of a leveraged position when collateral is insufficient.

Explanation

Liquidations are common during volatility spikes. Risk management is more important than predicting direction.

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FAQ

What does “Liquidation” mean?
Forced closing of a leveraged position when collateral is insufficient.
Where is this term used on the site?
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Is this financial advice?
No. These pages provide definitions and safety-oriented explanations, not investment advice.