What is Liquidation?
It is a scenario in which a position has not been closed and the market price has fallen below the liquidation price amid exceptionally erratic market conditions. The user's account currently displays a negative available balance.
*As an illustration, let's say that a trader had a long position in Bitcoin with a $40,000. If there are few orders at the $40,000 price point during volatile market conditions, the market price may fall below $40,000. A loss greater than the margin that was initially invested could result from the investor's contract not being closed and settled at a price higher than the bankruptcy price.
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