Liquidation Fee
A liquidation fee is a fee or charge associated with the liquidation of a leveraged position. How it is calculated and where the proceeds go depend on the platform.
Why it matters to you
Liquidation can cost more than simply realizing the trading loss that pushed the position into liquidation. Additional fees can further reduce the remaining value of the position or account. This is another reason liquidation should not be treated as a normal exit strategy.
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