Definition ∞ Leverage Cleanse Complete describes a market condition where excessive leveraged positions have been liquidated, typically following a sharp price movement. This event results in a reduction of speculative activity. It often signals a market reset, removing overextended participants.
Context ∞ Following periods of high volatility, market analysts and news outlets frequently report on whether a “leverage cleanse” has occurred. This event usually involves a cascade of liquidations that removes overextended traders. Such an occurrence potentially sets the stage for more stable price action and provides a clearer view of underlying market demand.
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