What Is Crypto Liquidation?

Crypto liquidation refers to the forced closure of a trader's positions due to a lack of sufficient margin. This happens when a trader’s account balance falls below the required threshold needed to maintain open positions, often after significant losses.

When liquidation occurs, the exchange or broker steps in and closes the trader's positions at the current market price to prevent further losses. While this process helps avoid accumulating more debt, it can result in substantial financial loss for the trader.

Rekt in Crypto:

"Rekt" is the term used when someone faces major losses, often as a result of poor trading decisions or market movements. It's derived from the word "wrecked" and is used humorously to describe the emotional aftermath of significant trading losses.

Risk Management is Key:

Liquidation and getting "Rekt" are real risks in the crypto world. Traders should always monitor their margin levels and use effective risk management strategies to avoid these pitfalls.

Remember: Consistency in trading is more important than big wins — don't risk more than you can afford to lose!

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