Leverage Flush
A leverage flush describes a rapid reduction in leveraged market exposure, often during a sharp move that forces or encourages many traders to close positions.
Why it matters to you
Markets can accumulate substantial leveraged positioning during extended moves. A sudden reversal can remove that leverage quickly through stops, voluntary exits and liquidations. Traders often compare price, OI and liquidation data to assess whether a major move has removed a meaningful amount of leveraged positioning.
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