Moon language, decoded
Liquidation price
The price at which the move against you equals your stake and the bet closes.
Every position has a price level where the loss equals the stake. Reach it and Moon closes the bet automatically, and that bet keeps nothing. The higher your leverage, the nearer that level sits to your entry. At the top of the range it takes only a fraction of a percent.
Why it matters hereIt is the practical meaning of high risk here: most leveraged traders lose money, and liquidation is usually how it happens.
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