Decoded Intelligence Signal
Liquidation (Leveraged)
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fundamentals
Verified: May 26, 2026Lexicon Core Definition
The forced closure of a leveraged position by an exchange when losses approach or exceed the deposited collateral — resulting in the complete loss of the margin used to open the position. A 10× leveraged position is liquidated by a 10% price move against it.
Analysis Breakdown
The forced closure of a leveraged position by an exchange when losses approach or exceed the deposited collateral — resulting in the complete loss of the margin used to open the position. A 10× leveraged position is liquidated by a 10% price move against it. Full explanation coming soon when Journey 6 content is ingested.