Liquidation
Liquidation is the forced closure of a leveraged position once losses eat through the margin backing it, and on a perpetual it can happen in seconds during a fast move. These guides cover how the liquidation price is calculated, the difference between cross and isolated margin, and how a short squeeze cascades through overleveraged positions. Whether it wipes your whole account or just one position depends on margin mode, and how far away it happens depends on your leverage and entry price, not on your confidence in the trade. A stop loss placed early, or simply sizing smaller, keeps you from finding out the hard way.
Guides
GuideWhat Is Liquidation in Crypto Trading? (2026 Guide)
Liquidation is the forced closure of a leveraged position when your margin can no longer cover its losses. This guide explains the liquidation price, maintenance margin, and the practical ways to avoid getting liquidated.
GuideLeverage and Liquidation
Understand how leverage works on Dexly and how to manage your margin to avoid liquidations.
GuideWhat Is a Short Squeeze? How It Happens in Crypto (2026)
A short squeeze is a rapid upward price spike driven by short sellers being forced to buy back their positions. Learn how forced buy-ins and cascading liquidations feed the move, and what signals traders watch.
GuideCross Margin vs Isolated Margin: Which Should You Use? (2026)
A plain-English breakdown of cross margin vs isolated margin for perpetual futures. Learn how each mode distributes risk, their trade-offs, and how to choose the right one per position.
GuidePosition Sizing & Risk Management for Traders
Learn how to size positions, calculate risk/reward ratios, and manage portfolio risk. A quantitative approach to surviving and thriving in leveraged trading.
GuideWhat Is a Stop-Loss Order? How to Use It in Crypto (2026)
A stop-loss is a risk-management order that automatically closes your position once price hits a preset level. Learn how a stop-loss order works, how it differs from a stop-limit and a trailing stop, and how to place one that actually protects you.
Related topics
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