When trading cryptocurrencies with leverage (e.g., x5 or x10), these numbers indicate that you can trade with a larger amount than your actual capital, amplifying both profits and losses.
Liquidation occurs when your losses reach a level where your account balance is insufficient to cover the borrowed funds, determined by a liquidation price, not a set time.
Higher leverage brings the liquidation price closer to your entry price, increasing the risk of losing your capital quickly.
To avoid liquidation, use lower leverage, set stop-loss orders, and maintain sufficient margin in your account.
