Coins Holder
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What is "Liquidation" (Liquidation)? 🤔🔥
The simplest explanation possible for beginners 👇
When you enter a futures contract with leverage…
And your losses start to approach your actual capital,
the platform automatically closes the position to protect itself from the loss.
✔ This is called: Liquidation (التصفية)
✔ It happens because:
Very high leverage
Large entry relative to capital
Not placing a stop loss
Or a strong movement against the direction
How to avoid liquidation?
1️⃣ Use low leverage
2️⃣ Don’t enter the trade with all your balance
3️⃣ Always place a Stop Loss
4️⃣ Only enter after a clear break or retracement
🔥 Liquidation is not fate…
It is the result of poor capital management.
The simplest explanation possible for beginners 👇
When you enter a futures contract with leverage…
And your losses start to approach your actual capital,
the platform automatically closes the position to protect itself from the loss.
✔ This is called: Liquidation (التصفية)
✔ It happens because:
Very high leverage
Large entry relative to capital
Not placing a stop loss
Or a strong movement against the direction
How to avoid liquidation?
1️⃣ Use low leverage
2️⃣ Don’t enter the trade with all your balance
3️⃣ Always place a Stop Loss
4️⃣ Only enter after a clear break or retracement
🔥 Liquidation is not fate…
It is the result of poor capital management.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
