What Is Crypto Liquidation? Risks and Strategies Amid Market Volatility

9/25/2025, 8:16:46 AM

In crypto assets, getting liquidated refers to the act of an exchange forcibly closing a trader's position to prevent further losses when the margin of a leveraged trader is insufficient to support their holdings.

Definition and Basic Principles of Get Liquidated

Get Liquidated, also known as forced liquidation, is the process where a trader’s leveraged position is forcibly liquidated by the exchange due to insufficient margin, with the aim of preventing unlimited losses and protecting the platform and other users.

Risk Management Tips for Beginner Investors

It is recommended to keep leverage below 3 times, strictly set stop-loss lines, build positions in batches to avoid heavy positions, and refer to the high liquidation zones shared by the community to reduce the risk of being liquidated.

Conclusion: Understanding and Dealing with Get Liquidated Risk

Getting Liquidated reflects systemic risk, which is an inherent characteristic of leveraged trading. Investors need to understand the logic of getting liquidated, prioritize risk control, and maintain stable operations in a market with intense fluctuations.

* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.

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