2025-12-21 07:20:50

What is the true nature of liquidation? It's not just a small loss in your account, but rather a direct "liquidation" enforced by the trading system. When the market trend is contrary to your holdings, if the price fluctuates wildly, your margin will quickly become insufficient to maintain your position. Once the margin falls below the minimum level required by the system, unable to cover potential loss risks, the system will automatically execute liquidation, forcibly closing all positions. The purpose of this mechanism is very simple - to protect the account from entering a negative state. Therefore, liquidation is not a trivial matter; it means your holdings have fallen into extreme risk, and the system is "applying the brakes" for you.

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nft_widow

· 7h ago

To put it bluntly, it means that margin trading went wrong, and the system is just stopping the bleeding for you. --- That's why I've never dared to open a full position with leverage, it's a bloody lesson, bro. --- Liquidation is just one market reverse away from bankruptcy, no wonder so many people have their dreams shattered overnight. --- Insufficient margin leads to cold-blooded closing of positions, this mechanism of the exchange is really something. --- Losses are not scary, what's scary is not having time to react; the system can do it in a second before you even realize it. --- Unlike stop loss, liquidation is the system forcibly sentencing you to death, no negotiation. --- So margin trading is about betting on probabilities, betting that your reactions are fast enough. --- No wonder pros say that controlling position is the most important thing, this stuff is too ruthless.

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Tokenomics911

· 12-21 07:45

Damn, this is why I got closed out last time without even reacting. Liquidation is basically the system's final ultimatum, you can't escape it. Leverage is truly a double-edged sword, a single pullback can wipe you out. Just thinking about it makes me anxious, insufficient Margin means a dead end. So, you see, when playing contracts, you have to leave enough buffer, otherwise just wait to be forcibly taken away by the system. This mechanism seems to protect the account, but in reality, it's just playing people for suckers. The liquidation prices set by some exchanges are really harsh, a bit shady. I don't touch leverage at all now, I can't afford that thrill.

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RatioHunter

· 12-21 07:23

Damn, another bloody lesson. Liquidation is truly the grim reaper of accounts. Insufficient Margin leads to an immediate GG, and the system doesn't give you any reaction time at all. I've heard too many frens say that only after being liquidated do they understand what pain is. Leverage looks so tempting but it can really be deadly.

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