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When would my order be liquidated?

OKX Learn

Published on Jul 19, 2023

Updated on Sep 27, 2024

2 min read

In a unified account, the margin level determines when a position is liquidated. When the margin level of an open position falls below 100%, the position will be partially or fully closed.

A common misconception is that traders might assume liquidation will occur when the margin level falls to 0%. This is not the case. When the margin level falls below 100%, the position will be liquidated in part or in full, and we'll collect a liquidation clearance fee that will be added to the OKX insurance fund.

Depending on the position tier, partial liquidation may occur instead of full liquidation. If the margin level requirement is still not met after partial liquidation, the position(s) will continue to be reduced until the margin level requirement is met or all positions are closed. This is one of OKX's risk control protocols intended to reduce the impact on the market when a large position is liquidated.

Users can estimate the price at which their positions will be liquidated using the calculator found towards the bottom of the derivatives product trading page. If a user has multiple open positions, the estimated liquidation price might differ from the actual liquidation price in a unified account.

Understanding how margin level is calculated for your account mode

An informed trader is a prepared trader. The guides linked below will help you to understand how the margin level is calculated based on your chosen account mode.

For single-currency margin mode or cross margin trading, click here.

For multi-currency margin mode or cross margin trading, click here.

For single or multi-currency margin mode, or isolated margin trading, click here.

Disclaimer

This content is provided for informational purposes only and may cover products that are not available in your region. It is not intended to provide (i) investment advice or an investment recommendation; (ii) an offer or solicitation to buy, sell, or hold digital assets, or (iii) financial, accounting, legal, or tax advice. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances. Information (including market data and statistical information, if any) appearing in this post is for general information purposes only. While all reasonable care has been taken in preparing this data and graphs, no responsibility or liability is accepted for any errors of fact or omission expressed herein. Both OKX Web3 Wallet and OKX NFT Marketplace are subject to separate terms of service at www.okx.com.
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