📘 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!
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