Crypto GlossaryLiquidation price
Liquidation price
The price at which a trader's open position in a particular security would be automatically closed. It is calculated based on a number of factors:
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The amount of leverage used;
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The size of the position;
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The current market conditions.
It is typically set at a level that would allow the trader to maintain the required margin level, while also taking into account potential slippage or other market factors that could impact the position. Traders should be aware of their liquidation price and monitor their positions closely in order to avoid margin calls and potential losses.
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