What is liquidation in futures - and how it will wipe you off the trader map
You opened a position in futures.
Leverage x10.
The price went the wrong way.
💀 And suddenly that's it.
Binance closes your trade.
Balance - to zero.
📌 What happened?
Liquidation is when the loss became so large,
that you have no collateral left.
The exchange closes the trade automatically.
To avoid losing your money - not yours.
📉 How it works:
Let's say:
• You have 100 USDT
• You opened a position with leverage x10
→ You “control” 1000 USDT
But… if the price drops by just 10% —
→ You lose everything
⸻
❗ Where to find the liquidation price:
When you open a trade, Binance shows the liquidation price.
📍 Always check it before entering.
📍 Set a Stop Loss before liquidation - always.
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💡 Lesson:
Leverage is not “accelerating profits”.
It’s a loss accelerator if you don’t know what you’re doing.
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👉 Have you ever experienced - a trade seems to be going, but the account has already been reset?
