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When you first start trading spot leverage, you always worry about one issue—will you be liquidated? As a beginner, I really haven't fully understood these mechanisms.
Liquidation is actually a risk control mechanism. When your account equity drops to a certain level, the exchange will automatically close your position to prevent further losses. Simply put, if your margin is insufficient, the system will forcibly sell your coins to cut losses.
How can you avoid being liquidated? The most practical way is to control your leverage multiple, avoid full-position trading, and leave enough risk buffers. Many beginners start with high leverage, and when market fluctuations occur, it’s easy to trigger liquidation. I recommend beginners start with low leverage to test the waters and get a feel for the market rhythm.
There's also a detail—make sure you understand the specific liquidation rules of the exchange you're using, as parameters may vary across different platforms. Proper position management can significantly reduce the risk of liquidation.