#Why Liquidations Happen in Crypto Trading?

1️⃣ Excessive Leverage

Using high leverage amplifies your position. Leverage can quickly turn profitable trades into huge losses.

2️⃣ Lack of Diversification

Focusing all your funds on a single asset or trading pair significantly raises your risk. If the price of that asset drops, it leads to heavy losses.

3️⃣ Ignoring Stop-Loss Orders

Without SL, you leave yourself vulnerable to sudden price moves, which can trigger liquidation when your positions go against you.

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