Learn / Liquidation
What is Liquidation in crypto?
The forced closing of a leveraged position when it can no longer cover its losses.
Definition
A liquidation happens when a leveraged trader’s margin is no longer enough to keep a position open. The exchange automatically closes it at market to prevent the account going negative.
How it works
A long is liquidated when price falls to its liquidation level; a short is liquidated when price rises to it. Because many traders cluster their leverage around the same levels, large liquidations often trigger cascades — fast, violent moves as forced selling (or buying) feeds on itself. Tracking liquidations shows where over-leveraged traders just got wiped out.
Track liquidation on TRIXO
TRIXO streams real-time liquidations, so you can see the moment forced selling or buying hits the market and how large it is.