Liquidation is the forced closure of a position by the platform when the margin no longer covers the loss. It happens once losses on a trade reach the point where the collateral posted can no longer absorb them.
Only the margin on that position is at risk: the rest of the funds on the balance are untouched. How the threshold is calculated and what moves the liquidation price is covered on the Margin Management page.
Position health indicator
Each position's state is shown on a colour-coded health bar reflecting how far the margin sits from the liquidation threshold.
| Zone | What it means | What to do |
|---|---|---|
| Green | Margin is comfortably above the liquidation threshold and risk is well managed | Nothing, the position is healthy |
| Yellow | The position is approaching the threshold and the margin buffer is close to the minimum required | Watch the position more closely and add margin if conditions turn unfavourable |
| Red | The margin buffer is critically thin and the market is close to triggering liquidation | Act immediately: add margin or close part of the position to reduce exposure |
The higher the leverage chosen, the less price movement it takes for a position to travel through all three zones. A stop loss set in advance closes the position at a level you choose — before the platform gets there.