Unified Account Liquidation Triggers and Partial Position Reduction
Summary
This guide explains liquidation in a unified trading account using the account’s margin level. It states that when the margin level falls below 100%, the exchange may close some or all of an open position; traders should not assume liquidation waits until margin reaches zero. A liquidation clearance fee is also charged and added to the platform’s insurance fund.
The process can depend on position tier. Partial reductions may occur first, with further reductions if the margin requirement is still unmet, which the guide presents as a way to limit the market impact of closing a large position. A platform calculator can estimate liquidation prices, but multiple positions in a unified account may make the actual price differ from the estimate. The document does not provide the calculation formulas or explain the distinct margin modes in detail, directing readers to separate guides for those rules.
Key ideas
- Liquidation can begin when account margin level drops below 100%, rather than waiting for zero.
- The platform may reduce a position partially before closing it fully.
- Further reductions can occur until the margin requirement is restored or positions are closed.
- A liquidation clearance fee is directed to the platform’s insurance fund.
- Estimated liquidation prices may differ from actual outcomes when several positions share a unified account.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.