Crypto Liquidation Explained: Margin, Leverage & Risk
📚 DipTrade Trading 101 | #02: Liquidation
What happens when your margin can no longer support your position?
Your position may be automatically closed—a process called liquidation.
With higher leverage, a smaller price move against you can trigger liquidation.
💡 Key takeaway
Liquidation is triggered by margin requirements—not simply when your loss reaches 100%.
🛡️ Before you trade
Check your liquidation price, use manageable leverage, and set a stop-loss. A stop-loss does not guarantee execution at your chosen price.
💬 Up next: Funding rates. What would you like to know? 👇
Liquidation depends on maintenance margin, fees, and platform rules.
DipTrade #Trading101
https://x.com/DipcoinLabs/status/2112092392513761291
📚 DipTrade Trading 101 | #02: Liquidation
What happens when your margin can no longer support your position?
Your position may be automatically closed—a process called liquidation.
With higher leverage, a smaller price move against you can trigger liquidation.
💡 Key takeaway
Liquidation is tri…
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