avoidliquation

This is why you can enter the market when the price is low and after a rise in price you still experience liquidation.

Even if you buy a crypto asset at a low price on Binance, liquidation can still happen if you are trading Binance Futures, not spot. In futures trading, liquidation is determined by your entry price, leverage, and maintenance margin, not the long-term rise of the coin. If you use high leverage, even a small temporary drop can hit your liquidation price before the market moves upward again. For example, buying long with 20x or 50x leverage means a small pullback can wipe out your margin instantly.

You may also face liquidation if your position size is too large, your margin balance is small, or if funding fees slowly reduce your available margin. On Binance Spot, you own the asset and cannot be liquidated, but on Futures, liquidation is automatic once your margin falls below the platform’s requirement.

To avoid liquidation, reduce leverage, add margin, and use stop-loss orders.
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