Forced Liquidation

Forced liquidation is a fundamental aspect of crypto trading that's essential to understand, particularly if you're involved in leveraged trading. In this guide, we'll explore what forced liquidation is, how it works, its implications, and how to avoid it. What is Forced Liquidation? Forced liquidation in crypto trading is when an exchange automatically closes a trader's open positions to ensure their losses do not exceed their account balance. This typically happens in leveraged trading, where traders borrow funds to trade…