Margin trading liquidation
Margin trading is a method of trading assets using funds provided by a third party. When compared to regular trading accounts, Margin accounts allow traders to access greater sums of capital, allowing them to leverage their positions. Essentially, Margin trading amplifies trading results so that traders are able to realize larger profits on successful trades.
However, Margin trading does not come without risk, please be aware of the possible liquidation: Liquidation happens when an exchange or brokerage closes out a trader’s position because it can no longer meet margin requirements. Margin is the percentage of the total trade value that must be deposited with the broker to open and maintain a position.
When a trader’s margin account falls below a level previously agreed upon with the exchange, positions will automatically start liquidating.
To prevent from getting liquidated in the OpenLeverage platform, please refer to here for liquidation statement.