In Binance, Future Liquidation refers to the process that occurs when a trader's margin balance falls below the required maintenance margin in a futures contract position. Here's how it works:

1. Leverage Trading: When you trade futures on Binance, you can use leverage, meaning you borrow funds to increase your position size. While this can amplify profits, it also increases the risk of losses.

2. Margin Balance: You are required to maintain a certain amount of collateral (margin) in your account to cover potential losses. The margin balance fluctuates with the value of your open positions.

3. Liquidation: If your losses become too large, your margin balance may drop below the maintenance margin level. When this happens, Binance will automatically close your position (liquidate) to prevent further losses. This ensures that your losses do not exceed the funds in your account.

4. Liquidation Price: This is the price level at which your position will be automatically closed. Binance calculates the liquidation price based on your leverage, position size, and margin balance. Higher leverage brings the liquidation price closer to the entry price, increasing risk.

To avoid liquidation, you can:

Add more margin to your account.

Reduce leverage.

Close your position before reaching the liquidation price.#BinanceSquareFamily #FutureTarding