What is liquidation?

What is liquidation?

Liquidation is the process of selling off a trader's assets to cover their losses when their margin or leveraged position falls below a certain threshold. It is a risk management tool used by exchanges to ensure that traders do not lose more than they can afford to.

Start your Crypto Trading journey with Density today and experience hassle-free trading with up to 25x leverage, fast KYC and 24x7 customer support.