#Liquidity101
What is liquidity?
In crypto, a liquidation is the forced closing of a trading position. This usually occurs because the margin to cover a position has run out, meaning the trade has to be settled, and is a function of leverage.
And how does leverage work?
The use of leverage requires a deposit, known as a margin, that allows for an increase in exposure to an underlying asset.
That’s it for now and Eid Mubarak for everyone who celebrates!
