Crypto Liquidation Dashboard

When you trade with leverage, you only put in a small amount of your own money, which is called margin. The rest is known as borrowed. If the price moves against you, your losses eat into the margin. Once your margin runs too low, the exchange automatically closes your trade. This protects the exchange from losing more money than you deposited. When you start losing your margin, the trade ends.

Every leveraged position has a liquidation price. This is the price level at which your trade will be closed automatically. The higher your leverage, the closer this price is to your entry point.

If you are a trader, it’s super important to know the different types of crypto liquidations. Whether it’s a bitcoin liquidation or an altcoin trade, the same basic rules apply across most platforms.

1. Full Liquidation Vs Partial Liquidation

   In full liquidation, your entire position gets closed at once because you don’t have enough margin to keep it open. While in the partial liquidation, only a part of your position gets closed to keep your margin at a safe level, and the rest stays open.

2. Market Liquidation vs Forced Liquidation

   In market liquidation, you close your own trade in profits or cut your losses. While in forced liquidation, the exchange closes your trade for you because you don’t have enough margin left in your account. The majority of the trades you observe under crypto liquidation today, or BTC liquidations, come from forced liquidation.

3. Long Liquidation and Short Liquidation

   A long liquidation happens when a trader believes the price will go up, but it drops. In short liquidation, the trader bets the price will go down, but it rises instead.

4. Crypto Futures Liquidation

   In this, your position gets force-closed by the exchange because your margin can’t cover further losses. When the leverage is high, even a small price swing can wipe out your account balance. When these liquidations happen one after another, it can spark a liquidation cascade that pushes the market even harder.

Leverage means you are trading with borrowed money. So your position is much bigger than the funds you actually invested. That’s where the liquidation risk increases. The reason! Your margin only covers a small buffer against price moves.

The higher your leverage, the thinner that buffer gets. With 10x leverage, your buffer can absorb hardly a 10% price move before your funds run out. With 100x leverage, that same buffer shrinks to just about 1%. So the more your leverage, the less the market has to move against you before you’re wiped out. Leverage does not just add risk, but it directly shrinks the safety gap between your trade and liquidation.