Source: https://mochatrade.com/learn/glossary/liquidation-forced-square-off

# Liquidation / forced square-off
URL: https://mochatrade.com/learn/glossary/liquidation-forced-square-off
Last modified: 2026-10-17

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](https://mochatrade.com/learn/start-here/nvidia-trade-walkthrough); when many sit at one level, [each forced sale triggers the next](https://mochatrade.com/blog/mocha-markets-weekly-019). [How Mochatrade liquidates](https://mochatrade.com/support/how-leverage-and-margin-work-on-mochatrade).

## Related terms

- Margin call: https://mochatrade.com/learn/glossary/margin-call
- Position sizing: https://mochatrade.com/learn/glossary/position-sizing
- Buying power: https://mochatrade.com/learn/glossary/buying-power
- Liquidation cascade: https://mochatrade.com/learn/glossary/liquidation-cascade
- Liquidation price: https://mochatrade.com/learn/glossary/liquidation-price
- Mark price: https://mochatrade.com/learn/glossary/mark-price

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