Liquidation

Futures exchanges have created various risk management mechanisms to protect high-leverage traders from significant losses. One of such mechanisms is liquidation, the purpose of which is to avoid losses exceeding the margin.

the trader. In addition to losses on liquidation, a liquidation fee («insurance clear») is charged, its size is set by Binance, it may differ on different pairs.

For cross-margin trades, liquidation occurs when your account balance is about to be negative.

If you trade on cross-margin and use large leverage, exceeding the limits of your deposit, you risk losing your deposit.

Keep money management in order to avoid liquidations