✍️Liquidation or stop loss, which one do you choose?
After trading for over five years, one of the most important lessons I’ve learned is the importance of protecting your capital. In the volatile world of cryptocurrency trading, understanding the difference between liquidation and stop loss can be the difference between survival and prosperity. So, let me share with you what I’ve learned from my experience.
1. Filter 😶🌫️
Liquidation is what happens when your position drops so low that your margin can no longer cover the losses. The exchange automatically closes your trade, effectively meaning “game over.” In my early trading days, I learned the hard way that liquidation isn’t just painful — it can wipe out your entire margin. It’s the last thing any trader wants to experience.