LIQUIDATION LEVEL
A specific value of a trader’s account that is automatically triggered and executed when it reached below the liquidation of the trader’s forex positions. Expressed as a percentage value of assets, the trader determines the liquidation level when making his or her forex trading account. This is to reduce the trader’s risk and keeps him or her away from losing more money. If the positions go against the trader, the account will reach the liquidation level unless the investor adds up margin on top of his or her account.
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