Glossary Term


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To liquidate a position is simply to close it at whatever the prevailing market rate is. Liquidations typically occur when a losing margin position runs out of free margin (i.e goes over the margin level that your broker is willing to extend to you). In such cases, you will either have to deposit more capital in order to keep the position open or you will have to close it at a loss.

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What is liquidate? A Traders Expert explanation

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