Liquidation price on Binance
👉 The price at which your trade is automatically closed because you don’t have enough money to keep it open.
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When you use leverage (borrowed money), Binance lets you trade bigger than your actual balance.
But ⚠️ if the market goes against you too much, Binance will:
➡️ close your position automatically
➡️ to prevent further losses
That closing point = Liquidation Price
📉 Easy Example
Let’s say:
You have $100
You use 10x leverage → now you can trade $1000
You buy Bitcoin (BTC) at $30,000
Now…
👉 If the price drops slightly, your loss is bigger because of leverage
If BTC drops to around $27,000–$28,000 (example range)
Your $100 margin is almost gone
💥 Binance will liquidate your position
🧠 In Simple Words
Normal trading: You lose slowly
Leverage trading: You can lose everything quickly
Liquidation limit: The danger line 🚨
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🔑 Key Points
✔ Higher leverage = liquidation happens faster
✔ Lower leverage = safer (more room for price movement)
✔ Always check your liquidation price before trading
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⚠️ Beginner Tip
👉 Start with low leverage (like 2x or 3x)
👉 Always use stop-loss to avoid liquidation