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.