What it means
Liquidation can happen when a trade moves against a leveraged position and the account no longer has enough margin.
Why it matters
It is one of the main risks of margin, futures and perpetual trading.
Common mistake
Do not treat Liquidation in crypto as a universal rule. Exchanges, wallets and card apps may use the same term differently, especially around limits, fees, networks and account restrictions.
User action
Before relying on this term, check the provider's official help page, fee schedule or product terms. If funds are involved, test with a small amount first and keep a record of the transaction or setting.
Related pages
Continue with Margin trading or return to the crypto glossary.
How to use this term
Use Liquidation as a practical checkpoint when comparing exchanges, wallets, cards or on-chain tools.
What to check
Check how the term appears in fees, limits, account rules, wallet flows and risk notes before making a platform decision.