The process by which a trader has an open leveraged position – often via a futures contract – that goes against their intended goal, resulting in the loss of the entire initial position, is referred to as liquidation. For example, suppose a trader opens a position to buy $1,000 USD worth of ether (ETH) with 10X leverage at a current price of $2,000 per ETH, betting that the price will rise, but the market moves in the opposite direction and the price falls below their $1,500 USD/ETH liquidation point, resulting in a complete loss of their initial investment.