Ever wondered why your position got liquidated? Here's why:
High Leverage: Using leverage like 20x or 50x can be risky—small market movements can completely wipe out your margin.
Sharp Price Movements: Sudden spikes or drops (like a crash while you're long or a pump while you're short) can quickly turn the tide against you.
Low or Insufficient Margin: Not maintaining or topping up your margin leaves you vulnerable during market swings.
Funding Fees (for perpetuals): Holding positions too long while paying continuous funding can slowly drain your margin.
Exchange Issues: Outages, slippage, or failed stop-loss/limit orders can lead to unexpected liquidations.
Oversized Positions: Going too big relative to your capital gives you less room to survive volatility.
Master these pitfalls—and the path to success becomes much clearer.
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