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What Is Liquidation (Square-Off) and When Does It Happen?

Mochatrade automatically closes your position when your margin can no longer cover potential losses. It closes at the available market price, a liquidation fee applies, and any remaining balance returns to your wallet.

Prerequisites & Limits

  • Your liquidation (square-off) price is calculated from position size, entry price, leverage, margin posted and Mochatrade's liquidation rules.

  • It's shown on your position screen before and after you open a trade.

  • Your maximum loss is the margin posted for that position (isolated margin).

  • Liquidation fee: [Rate to be published, see the fee schedule on Mochatrade].

  • Higher leverage puts your liquidation price closer to your entry price.

Step-by-Step Navigation

  1. Before trading, check the estimated liquidation price in the order summary.

  2. After opening, find your position in the Positions tab on the Trade page.

  3. Read the liquidation price shown on the position card.

Common Failures & Troubleshooting

  • I was liquidated at a worse price than shown: In fast markets, slippage or low liquidity can close a position at a different price than the liquidation price.

  • My position was liquidated very quickly: Rapid price moves during high volatility can reach your liquidation level fast, especially at high leverage.

  • Liquidation took longer or filled at a different price: When market liquidity is thin, the position may take longer to close or close at a different available price.

  • I didn't get a warning: Mochatrade may alert you when margin runs low, but alerts aren't guaranteed. Monitor your positions regularly.

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