◇ GLOSSARY
Liquidation
Forced closure when equity falls below maintenance margin. The venue sends market orders to close your position; there is no phone call and no grace period. Liquidation uses mark price, not last, on most venues.
Liquidation is a margin breach, not a moral judgment. Equity (margin plus unrealized P&L) drops below maintenance, the engine sends market orders to flatten you. No negotiation window on most crypto venues.
At 10× on $2,000 margin controlling $20,000 notional, a 5% adverse move is roughly $1,000 against equity before fees. That is half your collateral on paper. Add funding bleed and you are closer than the entry screen suggested.
Liquidations use mark, not last. A wick on the tape you never traded can still move mark enough to trigger if the index moves. Size so a bad hour does not put you across the line.