Liquidation

Getting liquidated is painful. The exchange closes your position at the worst possible moment, you lose your margin, and often the price immediately reverses. It's the ultimate "rekt." Liquidations happen when you use too much leverage or don't set proper stops. During volatile moves, cascading liquidations create those brutal wicks—everyone's getting liquidated at once, pushing price even further. To avoid liquidation, use less leverage (3x instead of 20x), set stop losses before liquidation levels, and never go all-in on one position. Check your liquidation price before entering every trade. If your liq price is 5% away, you're using too much leverage.