Liquidation / forced square-off

Liquidation, or forced square-off, is the venue closing a leveraged position because the margin can no longer cover the loss, at a price computed before you entered. No call, no choice, and the fill can be worse. Read it off the panel before the click; when many sit at one level, each forced sale triggers the next. How Mochatrade liquidates.

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In the help centreSee how leverage and margin work on Mochatrade
  • Margin callA margin call is a broker's demand for more funds when your account falls below the required margin; ignore it and…
  • Position sizingPosition sizing is deciding how much to trade: the rupees you are willing to lose divided by the distance from entry…
  • Buying powerBuying power is the position value your free margin can open at the allowed leverage: ₹20,000 at 10x is ₹2,00,000. It…
  • Liquidation cascadeA liquidation cascade is a chain of forced closes: traders with similar entries and leverage have liquidation prices a…
  • Liquidation priceThe liquidation price is where the venue closes your leveraged position, computed from entry, leverage and margin…
  • Mark priceThe mark price is the price a venue judges your position by, for unrealised profit and liquidation, built from the…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

Where it comes up