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what does liquidation in crypto mean

Last Updated on October 4, 2023 by Paganoto

Liquidations in crypto are common but what does it mean?

Liquidations in crypto are common but what does it mean?

Liquidation refers to the activity of selling off crypto assets for cash to mitigate losses in the event of a market crash. However, in the crypto world, the term liquidation is mainly used to describe the forced closing of a trader's position due to the partial or total loss of the trader's initial margin.Jun 16, 2022

What Does Liquidation Mean and How to Avoid It? – CoinDesk

What Does Liquidation Mean and How to Avoid It? – CoinDesk

In the context of cryptocurrency markets, liquidation refers to when an exchange forcefully closes a trader’s leveraged position due to a …

What Is Crypto Liquidation & How Do I Avoid It? – Bybit Learn

What Is Crypto Liquidation & How Do I Avoid It? – Bybit Learn

Liquidation refers to the process of selling off crypto assets for cash to minimize losses, especially in the event of a market crash. However, …

Forced Liquidation – Binance Academy

Forced Liquidation – Binance Academy

The term liquidation simply means selling assets for cash. Forced liquidation means that this selling happens automatically, when certain conditions are met. In …

What Does Liquidation Mean and How to Avoid It?

What Does Liquidation Mean and How to Avoid It?

In the context of cryptocurrency markets, liquidation refers to when an exchange forcefully closes a trader’s leveraged position due to a …

How Crypto Liquidations Could Make You Pay Twice – Forbes

How Crypto Liquidations Could Make You Pay Twice – Forbes

Liquidations occur when you borrow funds on margin and fail to fulfill the margin call on time. In such situations, exchanges convert your …

Liquidation | Alexandria – CoinMarketCap

Liquidation | Alexandria – CoinMarketCap

Liquidation refers to the conversion of an asset or cryptocurrency for fiat or its equivalents such as Tether (USDT) and other stablecoins, …

What is liquidation on crypto exchange? | by Andrey Costello

What is liquidation on crypto exchange? | by Andrey Costello

When opening a leveraged trading position, its liquidation price is automatically determined. If the cryptocurrency price crosses this mark, the …

How to avoid liquidation in crypto trading – Coin Culture

How to avoid liquidation in crypto trading – Coin Culture

What is liquidation? … In the crypto markets, liquidations refer to when you are forced to exit a position to avoid negative equity due to …