WHAT IS LIQUIDATION AND HOW TO AVOID IT?
Liquidation is every futures trader’s biggest fear.
And for good reason.
When your position is liquidated, you lose all the margin you put into that trade. In seconds.
How does it happen?
When the price moves far enough against you and your margin is no longer enough to cover the losses, Binance automatically closes your position.
With 10x leverage, the price only needs to move 10% against you to liquidate you.
With 20x, 5%.
With 50x, 2%.
How can you avoid it?
Three simple rules:
1. Always use a Stop Loss before the price reaches the liquidation level.
2. Use isolated margin so one liquidation does not affect the rest of your account.
3. Don’t risk more than 1-2% of your capital per trade.
Liquidation is not bad luck. It is the consequence of not managing risk. $BTC $BNB $ETH
💎 Premium signals + analysis in my profile VIP Chat — 15 USDT/month.
Liquidation is every futures trader’s biggest fear.
And for good reason.
When your position is liquidated, you lose all the margin you put into that trade. In seconds.
How does it happen?
When the price moves far enough against you and your margin is no longer enough to cover the losses, Binance automatically closes your position.
With 10x leverage, the price only needs to move 10% against you to liquidate you.
With 20x, 5%.
With 50x, 2%.
How can you avoid it?
Three simple rules:
1. Always use a Stop Loss before the price reaches the liquidation level.
2. Use isolated margin so one liquidation does not affect the rest of your account.
3. Don’t risk more than 1-2% of your capital per trade.
Liquidation is not bad luck. It is the consequence of not managing risk. $BTC $BNB $ETH
💎 Premium signals + analysis in my profile VIP Chat — 15 USDT/month.