Definition ∞ Bybit liquidations refer to the automatic closure of a trader’s leveraged position on the Bybit derivatives exchange. This process happens when a position’s margin falls below the maintenance margin requirement. It serves to limit losses for traders and manage risk for the exchange.
Context ∞ Similar to other major derivatives platforms, Bybit liquidations are closely watched metrics in crypto markets. Large volumes of liquidations often correspond with sudden price swings, indicating periods of heightened market stress or speculative activity. These events frequently influence short-term market trends and investor behavior, especially in perpetual futures markets.
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