Liquidations

Liquidation occurs when your account no longer has enough margin to support your open positions.

How Liquidation Works

When the unrealized loss on your positions erodes your margin below the maintenance margin requirement, The liquidation engine automatically closes your position to prevent further losses.

Maintenance Margin

The minimum margin required to keep a position open. This varies by market and leverage:

• Higher leverage = higher liquidation risk (price doesn't need to move as far)

• Lower leverage = more breathing room before liquidation

Avoiding Liquidation

1. Use lower leverage — Gives your position more room to move against you

2. Set stop losses — Automatically exit before liquidation price is reached

3. Monitor your positions — Keep an eye on your margin ratio

4. Add margin — Deposit additional funds to increase your account balance

Cross Margin Protection

With cross margin, your entire account balance acts as collateral. This means profits from one position can offset losses in another, reducing overall liquidation risk.

In cross margin mode, a liquidation event can affect your entire account balance, not just the margin allocated to one position.