There’s a difference between:

• initial margin (what you start with)

• maintenance margin (the minimum required to keep the position open)

As price moves against you:

• Your margin shrinks

• Once it hits maintenance level → liquidation process begins

Sometimes positions are partially reduced before full liquidation.

It’s not always instant. It can happen in stages.

Ever watched a position slowly get reduced instead of closing all at once? 👇

Educational only. DYOR.
#Margin #Leverage #RiskManagement