What Is the Difference between Partial and Full Liquidation in Crypto Derivatives?

Partial liquidation is a system where only a portion of a trader's leveraged position is closed to bring the margin level back above the maintenance requirement. This allows the trader to retain some of their position.

Full liquidation, conversely, involves closing the entire position when the margin level is extremely low or when partial liquidation fails to restore the required margin. Partial liquidation is generally preferred as it is less disruptive.