Krutika Adani
Crypto liquidation happens when a trader's position is automatically closed due to insufficient margin. This typically occurs in leveraged trading when market movements go against the trade.
High leverage – Small price drops can wipe out positions
Market volatility – Sudden swings trigger stop-loss orders
Insufficient margin – Not enough funds to cover losses
Use Stop-Loss Orders – Automatically exit before big losses
Lower Leverage – Avoid extreme risk on volatile assets
Maintain a Healthy Margin – Keep extra funds in your account
Diversify Your Portfolio – Don’t put all your funds in one trade