noun | fawrst li·kwuh·dey·shn
Forced liquidation is like when your girlfriend breaks up with you and then sets all your clothes on fire in the front yard - it's when a trader's position is automatically closed out by the exchange because they don't have enough margin to cover their losses. It's like getting kicked out of the casino for being too broke to play.
Example
"I got forced liquidated on my 100x long position because Elon tweeted some dumb shit about Dogecoin. Lost my entire life savings and now I'm living in a cardboard box behind the Wendy's. This is what I get for gambling on a memecoin."
"Getting forced liquidated is like the walk of shame of trading - everyone on crypto Twitter sees your position get rekt in real-time and you can't do anything about it. It's like streaking through the quad, but instead of cheers, you get a bunch of degen frogs spamming 'REKT' in your mentions."
on
06 May 2024
