- More US traders engaged in pre-market liquidation risk checks in 2025.
- Traders typically check liquidation risks to manage their positions.
- Liquidation risk checks are becoming crucial indicators in leveraged crypto trading.
Data from a recent survey suggests that US crypto traders were more cautious during peak volatility periods in the second half of 2025, compared to their global counterparts. Details from research conducted by Leverage.Trading reveal that US traders ran twice as many liquidation risk checks per trader as the global average during peak volatility in the period under review.
Leveraged Traders Check Liquidation Risks Often
According to the survey report, the research group analyzed roughly 880,000 anonymized pre-trade risk checks between August and December 2025. The collated data showed a consistent pattern among traders worldwide. Most traders reviewed their liquidation levels early, and many increased their margin as market volatility picked up.
Although the pattern was consistent across global jurisdictions, data from the US suggested a higher activity rate within the region, suggesting higher market participation. US traders’ activities also reflected earlier liquidations and margin checks that sometimes lasted for days before high volatility.
US Traders Have Developed a Highly Cautious Approach
Notably, the survey highlighted the risk aversion of US traders, highlighting a significant shift in typical traders’ behavior. Most crypto traders surveyed often checked liquidation levels before taking positions. While in trades, they monitored how things evolved, checking how close their positions were to liquidation.
Leverage.Trading’s founder, Anton Palovaara, stated that the observed trend reflects a crucial shift in the crypto market. According to Palovaara, such behavior can reveal stress building in leveraged markets before liquidation totals appear in public data.
Liquidation Risk Checks Could Serve as Market Indicators
Although the evolving pattern does not necessarily imply that retail activities predict market direction, it suggests that increased risk checking may indicate traders were becoming more cautious about downside risk while broader market stress was still building.
As a trading strategy, results from the survey reveal that most traders who engaged in liquidation risk checks did so to gauge how much room their positions had left. Many of them added more funds to their trades to boost margin levels and avoid being kicked out of the market.
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