Crypto trading · Pro
Liquidation price
What does Liquidation price mean?
Liquidation price is a displayed price threshold associated with forced position reduction or closure for insufficient margin. In account-wide margin systems it may be only an estimate that changes with other exposures.
Example
An isolated position approaches its mark-price liquidation threshold after an adverse move.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
A prop loss rule can be breached before exchange liquidation. A liquidation estimate is neither a stop-loss order nor a guaranteed execution price.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.