$MDX / USDT 💰 Daily futures signals with high profit on my $W +17349321074
What is a liquidation call?
- A liquidation call is the process where a trading platform forcibly closes a trader’s position because the margin account balance falls below the required maintenance margin. This typically happens in leveraged trading, where traders borrow funds to increase their position size.
Traders can use leverage to open positions larger than their account balance by borrowing funds. They must maintain a certain margin, which is a fraction of the total position size. For example, if a user has 20x leverage, their position would be liquidated if the underlying asset’s price moves by 5% against their position.
