Understanding Liquidation in TradFi (MT5)

[Estimated Reading Time: 3 mins]

This article explains how liquidation (also known as a stop out) works in Bitget’s TradFi (MT5) service, including when it’s triggered and how to monitor your margin ratio.

What is liquidation?

Liquidation, or a stop out, occurs when your account equity drops below the required margin ratio to maintain your open positions on Bitget’s MT5 platform.

When this happens, Bitget will automatically close your open positions—starting with the one with the largest loss—to help prevent further losses and protect your account balance.

How liquidation is triggered in TradFi (MT5)?

In Bitget’s TradFi (MT5) service, liquidation is triggered when your margin ratio falls below 50%. This means:

Stop-out level = 50%

If your equity ÷ utilized margin × 100% is 50% or less, liquidation will begin immediately.

Note: Unlike in crypto derivatives, mark price or liquidation price is not used in MT5. Liquidation is purely based on your account’s margin ratio.

Where to check your margin ratio?

To monitor your margin ratio in the Bitget app:

1. Open the Bitget app.

2. Tap the Futures tab at the bottom.

3. Select TradFi.

4. View your margin ratio and equity status.

How liquidation works on MT5?

When your account hits the 50% stop-out level:

• Bitget’s system will begin closing positions automatically.

• Positions are closed one by one, based on largest unrealized loss first.

• This continues until your margin ratio rises above 50%.

This liquidation sequence is designed to reduce losses efficiently and restore your margin health as quickly as possible.

How to view liquidation records?

If liquidation occurs, you can check the details in the History tab of the MT5 platform. It will show:

• Margin ratio: (Equity ÷ Utilized margin) × 100%

• Equity: Your account’s real-time net value.

• Utilized margin: Margin used to support your open positions.

• PnL: Current profit or loss for each position.

This data helps you analyze why liquidation occurred and how to avoid it in the future.

FAQs

1. What triggers liquidation in MT5?
Liquidation begins when your margin ratio falls below 50%.

2. Which positions are closed first during liquidation?
The system closes the position with the largest unrealized loss first.

3. Is there a liquidation price in MT5?
No. MT5 liquidation is based only on margin ratio, not on a mark price.

4. Where can I check my margin ratio?
Go to Futures > TradFi in the Bitget app to view it.

5. Where can I see liquidation records?
Check the History tab in the MT5 platform for liquidation details.