What is the liquidation level?

In the crypto futures trading market, the liquidation level refers to the key price range derived from the distribution of high leverage positions. Simply put, these are the prices with the highest risk and the easiest to be forcibly liquidated.

When you open a high leverage position in the derivatives market, as long as the market moves in the opposite direction by a certain amount, the system will automatically trigger a forced liquidation. This critical point is called the liquidation level. It is not fixed but dynamically changes based on the distribution of high leverage positions across the entire market. The closer your liquidation level is to the current price, the greater the risk.