What is Liquidation?

This week's term in Kevin explains crypto is Liquidation. Most people in crypto already know what liquidation is, if they didn't in the week prior, they definitely know that it is this week. Liquidation essentially is getting your positions closed because you don't have enough money to support those orders. In industry terms we'd say you don't have enough margin.

When you don't have enough money in your account to support the risk on your (usually) leveraged positions you get liquidated. And your orders are forcefully closed.

Liquidation can result in negative balances.

Crypto doesn't need to be cryptic...

Join CoinMetro Founder and CEO, Kevin Murcko, as he breaks down seemingly complicated crypto terms into bite size chunks, helping you to easily understand common terms within the crypto space.

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#cryptocurrencies #crypto #bitcoin #blockchain #cryptotrading #buybitcoin #liquidation #whatisliquidation #margincall #margintrading #leverage

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"WARNING For Cryptocurrency Hodlers & Traders (Happening Right Now)"
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[wbrown]

Love how this 2 year old video is highly applicable to what’s happening today. Subscribed. Keep us updated!

[gglian]

That was amazing. Wish you would have kept going for another hour!

[universityofknowledge]

Politicians should stop calling America a company and begin seeing it as Country before they lose their (Company)

[TheStriked]

thanks finally someone explained the meaning of the word itself instead whatever complicated economics terms they throw at you

[Blackfilmguild]

Can you explain how liquidation works in a liquidity pool on a DEX. Could you have your money in the pool liquidated?

[KelseyBDJ]

This makes so much sense, thanks for description.

[universityofknowledge]

Is crypto not backed by gold accelerating inflation???Who bails out crypo currencies in is a debt loop of liquidation and

[universityofknowledge]

What if world currencies are used to buy american goods and after dethroning the america have to use a secondary currency to accept outside business????What is

[BanjoJo]

If you have 7 open positions, and 1 goes to liquidation, do you lose the 1 or all?

[universityofknowledge]

The buying of american and european goods with foreign money, not replaced by american or european currencies means goods are leaving without profits ....what is

[universityofknowledge]

If America is a Company or a capitalistic society what is being

[scottearth]

so you lose money at the same leverage rate that you earn? Once you hit zero, the trade is closed and you lose your money?

[maxtorres]

so how do i liquidate my account to deactivate my account on m1 finance

[jamesark]

Can I trade, , , , without using liquidation, , , Around $100 for doge coin, , , ?