**Note on Binance Liquidation & Liquidation Heatmap**

Binance, as one of the largest cryptocurrency exchanges, employs a liquidation mechanism to manage risk for leveraged trades. When a trader’s margin balance falls below the required maintenance level due to adverse price movements, Binance automatically closes their positions to prevent further losses.

### **Key Points on Binance Liquidation:**

- **Liquidation Levels:** Binance sets liquidation prices based on leverage and margin ratios. Higher leverage increases liquidation risk.

- **Liquidation Heatmap:** Tools like **Coinglass’s liquidation heatmap** help traders identify potential liquidation clusters (price levels where many traders could get liquidated). This can act as support/resistance zones.

- **Risk Management:** Traders should monitor liquidation levels to anticipate market volatility and adjust positions accordingly.

Understanding liquidation data can provide strategic insights, but always trade responsibly with proper risk controls.