Cryptocurrency Q&A What does liquidation mean?

What does liquidation mean?

CryptoLegend CryptoLegend Mon Dec 16 2024 | 7 answers 1345
I'm trying to understand the concept of liquidation. Could someone explain what it means in simple terms? What does liquidation mean?

7 answers

Carlo Carlo Wed Dec 18 2024
Liquidation refers to a specific scenario in financial markets.

Was this helpful?

96
72
WhisperInfinity WhisperInfinity Wed Dec 18 2024
It arises when the equity in an investor's margin account falls below zero.

Was this helpful?

240
89
MysticMoon MysticMoon Wed Dec 18 2024
This typically happens under exceptional market conditions.

Was this helpful?

276
93
Alessandro Alessandro Tue Dec 17 2024
Margin trading involves borrowing funds to increase potential gains.

Was this helpful?

44
50
CryptoVisionary CryptoVisionary Tue Dec 17 2024
When market dynamics shift significantly, margin accounts can be heavily leveraged.

Was this helpful?

155
22
Load 5 more related questions

|Topics at Cryptocurrency Q&A

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

The World's Leading Crypto Trading Platform

Get my welcome gifts