Skip to main content
MarketSurfer

What is Forced Liquidation?

Basics

강제 청산

When margin falls below the maintenance requirement and the exchange closes the position on its own. It is carried out regardless of one's own judgment, and depending on liquidity at that moment it may fill at a worse price than expected. The higher the leverage, the narrower the price room before liquidation, so it is safer to manage size and leverage together so that the liquidation price lies outside a realistic range.

Forced Liquidationliquidation priceif margin falls shortthe exchange closes it by force

Lessons using this term (with diagrams)

Related terms

← All glossary terms

Forced Liquidation meaning — Trading glossary | MarketSurfer