Liquidation is what happens when the market moves too far against your leveraged position. When this happens, your position is automatically closed, and the consequences depend on your chosen margin mode. With isolated margin, you only lose the specific amount allocated to that position. However, if you're using cross-margin, you could lose all available funds in that trading account, even those not directly allocated to the position. To learn more about margin types and their implications, see our guide on What is the difference between isolated and cross margin?
For example, if you open a 100,000 USDT long position on Bitcoin using 10x leverage, you only need to put up 10,000 USDT as margin. While this leverage allows you to control a larger position size, it also means your position will be liquidated if Bitcoin's price drops by roughly 10%. This is because a 10% move against your 100,000 USDT position would result in a 10,000 USDT loss - equal to your entire margin.
The more leverage you use, the less it takes to liquidate your position. With 5x leverage, your position won't be liquidated until the market moves about 20% against you. But at 20x leverage, even a 5% negative move could trigger liquidation.
The exact price at which liquidation occurs is called your liquidation price, and you can always view this for your open positions on JuCoin.