What is liquidation distance
How far the price is from the liquidation price, in percent. The smaller the distance, the closer the leg is to being liquidated by the exchange.
In the product
In ZML Trade, the combo table and the account position table have a Liquidation distance column. Trade uses the liquidation price reported by the exchange and measures from the current bid for the long leg and the current ask for the short leg. A combo’s pause-opening line, alert line and liquidation guard line are all set as liquidation distances.
How to read it
Read the smaller liquidation distance of the both legs: an action triggers as soon as either leg reaches its set distance. When a position has no liquidation price of its own (a spot leg, or liquidation measured on the whole account’s margin), the cell is blank. When there should be one but the exchange hasn’t given it yet, the cell shows “—”. Either way the reason shows on hover, the distance isn’t treated as zero, and no risk action is triggered. Risk controls explains what each line does.