Liquidations and leverage

Forced exits as accelerant — and reset.

Liquidations and leverage

| Concept | Explanation | |---|---| | Long liquidation | Forced closing of leveraged long positions. | | Short liquidation | Forced closing of leveraged short positions. | | Liquidation cascade | Forced exits accelerate the price move. | | Leverage flush | Large reduction in open interest and leveraged exposure. | | Post-liquidation condition | Market may stabilize, reverse, or continue after positions are cleared. |

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