What is liquidation?
Liquidation in crypto trading (especially on platforms like Binance) means your position is automatically closed by the exchange because you lost too much money and didn’t have enough funds to keep the trade open.
Simple Explanation:
Aap ne leverage use karke trade liya (borrowed funds se), lekin market ulta chala gaya. Jab aapka loss itna ho jaye ke aapka margin (collateral) khatam ho jaye, to Binance aapki position forcibly close kar deta hai — isey hi liquidation kehte hain.
Example:
Aap ne $100 se $1000 ka trade khola (10x leverage), lekin agar price aapke against 10% chala gaya, aapka $100 khatam ho sakta hai — aur trade liquidate ho jata hai.
Bachne ka tareeqa:
Stop-loss use karo
Zyada leverage mat lo
Risk management follow karo