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What Is Liquidation in Crypto Futures?
Liquidation mechanics, margin ratio, and how to stay farther from the danger zone.
Liquidation is the forced closure of a leveraged position when margin can no longer cover losses and maintenance requirements.
Why it happens
Price moves against you, unrealized loss grows, and equity falls below maintenance margin. The engine closes the position to stop further deficit.
Prevention habits
Lower leverage, wider but still logical stops, and avoiding stacking correlated high-risk positions all help.
- Know your liquidation price before entry
- Do not add size to a losing leveraged trade casually
- Volatile events need smaller risk
Mindset
On KuraCoin, treat liquidation price as part of order planning—not a surprise. If liquidation is too close, your size is wrong.
Final thoughts
Liquidation is the market enforcing math. Respect the math early.
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