Liquidation

Forced closure of a leveraged position when its margin is exhausted.

When a leveraged position's loss approaches the trader's margin, the exchange auto-closes it to protect itself and any insurance fund. Long liquidations happen as price falls; short liquidations happen as price rises. Clustered liquidation levels act as magnets · markets often run toward them because the forced selling/buying adds fuel. We publish a live LiqMap showing the aggregate liquidation pressure per 0.5% price bucket and a calculator that tells you exactly where your own position gets liquidated.

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Other terms

Funding Rate
Periodic payment between perpetual futures longs and shorts that keeps the contr...
Open Interest
Total notional value of all open futures positions at a given moment....
Basis
Price gap between a futures contract and its underlying spot index....
Profit Factor
Ratio of gross winning trades to gross losing trades. Above 1 means the strategy...
Win Rate
Percentage of trades that closed profitably....
Basis Points (bps)
1 basis point = 0.01%. We use bps as the canonical unit for signal net return....

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