NómadaCripto
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🚨 What is LIQUIDATION in futures trading and how to avoid it?
Know the golden rule to avoid losing your account!
📉 What does “liquidation” mean in trading?
Liquidation occurs when your futures position loses so much money that your collateral (margin) is no longer sufficient to cover it. At that moment, Binance automatically closes your position to prevent you from having a negative balance.
> 💥 Result: you lose ALL the margin you put into that trade.
⚙️ How does liquidation work?
1. Open a position (long or short) with leverage.
📉 What does “liquidation” mean in trading?
Liquidation occurs when your futures position loses so much money that your collateral (margin) is no longer sufficient to cover it. At that moment, Binance automatically closes your position to prevent you from having a negative balance.
> 💥 Result: you lose ALL the margin you put into that trade.
⚙️ How does liquidation work?
1. Open a position (long or short) with leverage.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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