2026-01-05 04:27:13

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.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

8 Likes

Reward
8
6
Repost
Share

Comment

0/400

DeFiVeteran

· 15h ago

Damn, beginners are most likely to fall into the high leverage trap. Honestly, low leverage really saves your ass; don't chase that small profit. You need to research the liquidation rules yourself, or you'll just be a leek. Poor position management is useless; that's the truth. In short, you need to keep a steady mindset; leverage isn't for all-in bets.

View OriginalReply0

GasFeeNightmare

· 01-07 06:33

Low leverage has really saved me several times; high leverage is like gambling with your life. --- Newbies who go all-in with high leverage usually end up shorting, it's hilarious. --- Liquidation is the exchange hitting the brakes for you before you mess up; thank goodness for it. --- The key is to understand the rules of the platform you're using, otherwise all defenses are useless. --- After being liquidated once, I used low leverage for half a year, and now I dare to add a little more. --- Every platform has different parameters, I didn't realize this before, lessons learned the hard way. --- For newbies, jumping straight into high leverage is just giving coins to the exchange, there's no other possibility. --- The term risk buffer is so well said; keeping enough margin changes your mindset entirely. --- The most disgusting part of liquidation isn't losing money, it's that sense of helplessness. --- Trying low leverage to test the waters is a brilliant suggestion; understand the game first before playing big, that's wise.

View OriginalReply0

ZenZKPlayer

· 01-05 04:40

Haha, this is how beginners are. Playing with leverage is like playing with fire; if you're not careful, you'll get burned. Start with low leverage and take it slow. Don't be greedy, really. The first time I went all-in with 3x leverage, I got wiped out immediately. Now I only play with 1.5x, and my sleep quality has improved a lot. Understanding platform rules is crucial. Different exchanges can have significantly different liquidation prices. Position management is the key; everything else is nonsense. The most common mistake for beginners is one word—greed.

View OriginalReply0

ForkInTheRoad

· 01-05 04:31

Low leverage is truly a painful lesson, and high leverage liquidation happens in an instant.

View OriginalReply0

WhaleSurfer

· 01-05 04:30

Honestly, beginners are most likely to get wiped out by high leverage. I've seen too many people go all-in and get liquidated immediately. Low leverage isn't about being cowardly; it's about staying alive to keep playing. The key is to understand your exchange's liquidation rules; they can really trap you. Instead of worrying about being liquidated every day, it's better to understand risk buffers first. Full position? Bro, you're asking for trouble. Keeping some bullets in reserve is the real key.

View OriginalReply0

UnluckyMiner

· 01-05 04:29

Bro, you're right. I was liquidated before, and that day I lost half of my margin directly, my mental state exploded. But to be honest, low leverage is really good. Although the profits are small, the sleep quality is better. Full position? That's just asking for death. I now use at most 30% of my funds to trade. You really need to understand the liquidation rules clearly; they vary greatly across platforms. I've suffered from this. Actually, the most important thing is to set proper stop-losses. Don't expect a V-shaped rebound.

View OriginalReply0