📘 Trading Words Explained #4

💣 Liquidation

😨 Liquidation happens when your account balance drops so low that the exchange forcefully closes your position.

📉 It usually happens in futures trading — when the market moves against you and you’re using high leverage.

⚠️ Example:

If you're using 50x leverage on $BTC and price drops just 2% — you could get liquidated! ❌

💡 To avoid liquidation:

🔹 Use proper stoploss

🔹 Don’t over-leverage

🔹 Manage your position size wisely

💔 One bad liquidation can wipe out your whole account — don’t gamble, trade smart!

$BTC $SOL $DOGE

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