How liquidation works
When you open a leveraged position, you put up collateral (margin). If the market moves against your position enough to deplete your margin, the exchange automatically closes your position to prevent further losses. This is liquidation.
For example: you go long on BTC at $60,000 with 10x leverage and $1,000 margin. Your position size is $10,000. If BTC drops ~10% to $54,000, your $1,000 margin is wiped out and your position is liquidated.
Liquidation price
Every leveraged position has a liquidation price — the exact price at which your position will be force-closed. This price depends on your entry price, leverage, and margin mode.
Higher leverage = liquidation price closer to entry. At 50x leverage, a 2% move liquidates you. At 2x leverage, it takes a ~50% move.
How to avoid liquidation
Use stop-loss orders — set a stop-loss above your liquidation price so your position closes before you get liquidated.
Use lower leverage — 3-5x gives you room to breathe. 50x is for experienced traders only.
Don't oversize — never risk more than 1-2% of your account on a single trade.
Monitor your positions — markets can move fast, especially crypto.
TP/SL on Relentless
Relentless makes risk management easy. Drag to set take-profit and stop-loss levels directly on the chart. Your TP/SL orders are stored on-chain and execute automatically — even if you close your browser.
Combine stop-losses with proper position sizing and you'll avoid most liquidation scenarios.