Skip to content

Market Projects People Data Learn Security

Log in / Sign up

Market People Security

Market Projects Data Learn Account

Loading…

Less noise. More understanding.

About BIBIBI Daily Digest Privacy & Account Security

For information and learning only. Not investment advice. Crypto assets involve risk.

© 2026 BIBIBI

Glossary

Terms7 shown

Mark PriceThe exchange-calculated fair value reference for the contract, used to measure unrealized profit and loss, check margin, and trigger liquidation.
leverageUsing borrowed funds to increase trading volume amplifies losses and may increase the risk of forced liquidation during periods of severe market volatility.
liquidationThe process by which a leveraged position is forcibly closed due to insufficient margin requirements or other reasons.
Cross margin modeA mode that considers the assets and multiple positions in a derivatives account together when calculating margin and liquidation risk.
Hedge liquidationEstablishing an equal-sized contract in the opposite direction to offset the existing futures position.
Forced LiquidationA risk-management mechanism in which a leveraged position is forcibly closed by the system after moving adversely beyond a specified threshold.
LiquidationThe disposal of a position or collateral that occurs when collateral or margin requirements are not met; the specific conditions are determined by the product.

All terms loaded

Definition

liquidation

The process by which a leveraged position is forcibly closed due to insufficient margin requirements or other reasons.

Read the related lesson