Leverage & liquidation
The fast way to zero
With leverage, a small move against you can wipe out your margin. When that happens the exchange closes your trade automatically: that's liquidation. At 10x, about a 10% move against you is enough; at 50x, only about 2%. Fees make it happen even sooner.
Remember: Liquidation distance ≈ 100% ÷ leverage.
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Liquidation means…
The exchange closes your position because your margin is used upYour collateral can no longer cover the loss.
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Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.