liquidation orders

Liquidation orders are instructions given to sell off assets or investments to quickly settle debts or manage risk. In finance or trading, when an account’s value falls below a certain threshold, a liquidation order automatically sells its holdings to prevent further losses. This process ensures that creditors are repaid or financial obligations are met, but it can also lead to significant losses if assets are sold at unfavorable prices. Essentially, liquidation orders are a safety mechanism to protect both the investor and the lender by converting assets into cash efficiently.