2025-12-26 10:23:55

Someone asked what the liquidation line means. Actually, this concept is very common in the crypto circle. Simply put, the liquidation line is a "warning line" set by the exchange — when your margin account balance drops to this level, your position will be forcibly liquidated. Its purpose is to protect the exchange and other investors from losing everything and still owing debts.

Taking leveraged trading as an example. If you use 100U to open a 10x leverage long position, the total value of this position is 1000U. If the price of the coin drops, your margin is continuously consumed. When the margin ratio drops to a certain critical point (usually a threshold set by the exchange), the system will automatically trigger the liquidation line, whether you want it or not, and your entire position will be closed. This helps to cut losses and also maintain the stability of the entire trading ecosystem.

Want to avoid being liquidated? The most practical way is: don't use excessive leverage, constantly monitor the margin ratio, and take proactive actions like closing positions or adding margin when necessary. Risk management is always more reliable than luck.

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MEVHunterBearish

· 3h ago

10x leverage is really a gamble. I've seen too many people lose everything in one go. --- The kill line is basically a bomb set by the exchange for you. If you don't follow the rules, just wait for it to explode. --- Adding margin? I always react too slowly. By the time I realize, my position has already been liquidated. --- Risk management is reliable, but in the crypto world, who can really do it? Greed is in our nature. --- Playing with 10x leverage on 100U is truly gambling with the exchange's life. --- The key is, at what margin rate will you be liquidated? Do all exchanges have the same rules? --- I just want to ask, what happens when an account gets liquidated? Is it wiped out completely or do you still owe money? --- Don't use high leverage. It's easy to say, but when a big market move comes, who can resist not closing? --- Timely stop-loss is all talk. In the end, it's just emotions that dominate.

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SchrodingersFOMO

· 3h ago

10x leverage players are all paper tigers; one limit-down and they’re done for. --- Honestly, don’t be greedy. Taking it slow with low leverage is the real way to go. --- What this guy said isn’t wrong, but in the crypto world, there are still a bunch of people who insist on risking it all with 20x leverage. They deserve to get wiped out. --- Keeping an eye on the margin ratio every day is a bit tiring. It’s better to just not play with leverage at all. --- Risk management? 90% of people in the crypto space don’t follow that at all; they’re just hoping to get rich quick. --- Once you get wiped out once, you’ll be honest. That’s a bloody lesson. --- I just want to ask, are the liquidation thresholds set by exchanges really fair? I always feel there’s some trick involved. --- Now I understand why I lost 5000U in one night — it was triggered by this thing. --- Instead of talking about risk management, it’s better to just not use leverage. Simple, straightforward, and effective.

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ser_ngmi

· 3h ago

Leverage is really a double-edged sword. There are dozens of people who got wiped out after going all-in with 10x. Once you've been liquidated, you know how it feels—it's a painful lesson. 10x? I now max out at 2x; my sleep quality has improved several levels, haha. Honestly, exchanges setting up this mechanism is really necessary, or it would truly become a casino. Many people don't think about margin calls; they can be a lifesaver at critical moments.

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ShitcoinConnoisseur

· 3h ago

10x leverage players are basically lucky kids --- Once cut, they never dare to gamble again --- To put it simply, don't be greedy, keep a close eye on the margin rate --- This thing is just like the logic of a casino breaking the house --- Adding margin? Might as well just admit defeat --- The common problem in the crypto circle is opening too high leverage, eventually you'll have to pay up --- The moment the liquidation line is triggered, it's truly despairing, a bloody lesson --- Reliable risk management is not wrong, but no one listens --- I never look at the margin rate, anyway if it drops, it drops --- A 10x win can make you rich, but after one more round, you'll just end up on the rooftop

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