What happens during a liquidation?
What happens during a liquidation?
When this happens:
- Your position is automatically closed by the system
- You will see “Market Liquidation” in your Trade History
- The position size will be reduced to zero (or partially reduced if partial liquidation applies)
- Your available balance and margin will update accordingly
Why was I liquidated at a different price to what was previously shown?
Why was I liquidated at a different price to what was previously shown?
This is most likely a result of cross margining.
- When you are using cross margin, all your open positions share the same margin pool.
- The displayed liquidation price is conditional: it typically assumes your other positions don’t change materially.
- When multiple positions move against you at the same time: losses are accumulated across multiple positions simultaneously.
- This means shared margin was consumed faster: your total account equity drops quicker than a single-position estimate.
- Liquidation thresholds adjusted upward in real time: as equity falls, the effective liquidation prices for each position increase.
- Liquidation triggered at the account level: once total margin fell below requirements, liquidation occurred even if one market hadn’t reached the originally displayed price.
- Use isolated margin if you want more stable, predictable liquidation prices per position.
- Avoid holding multiple correlated positions at high leverage on cross margin.