liquidation

When the trading company closes your borrowed-money trade by force because your losses ate up the deposit.

The fuller meaning

The forced closing of a leveraged position when losses erode the margin, often at a bad price. The liquidation price creeps closer to entry as leverage rises; in practice it comes before the deposit reaches zero. Traders keep the liquidation price well beyond the stop.

liquidation, also called liquidation price.

liquidation

The fuller meaning

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