Category

Trading Risk Controls

These terms cover posted collateral, maintenance buffers, forced close, and asset haircuts.

How to recognize this theme

Terms that describe collateral and forced-close mechanics in leveraged markets.

In a daily board, this category groups terms by their shared role. Look for four cards that describe the same mechanism, risk area, or workflow rather than four words that merely sound similar.

Educational context

These entries are vocabulary notes for learning. They are not project endorsements, token recommendations, exchange rankings, or trading signals.

Collateral

Collateral is an asset pledged to secure a loan or leveraged position.

Maintenance Margin

Maintenance margin is the minimum collateral level a leveraged position must keep to stay open.

Liquidation

Liquidation is the forced closing of a position when losses or collateral shortfall exceed allowed limits.

Haircut

A haircut is the discount applied to an asset's value when it is used as collateral or measured for risk.