Understanding liquidation: how to avoid it?

Liquidation in cryptocurrency trading means the forced closing of a position when a trader's margin becomes insufficient to maintain the open trade. This happens when the asset price moves in an unfavorable direction, and the balance does not cover the losses. To avoid liquidation, it is important to consider several factors: maintaining a sufficient level of margin, setting stop-losses, diversifying the portfolio, and regularly monitoring the market. Experience and attention to risks can help minimize the chances of forced closure of positions, ensuring more stable trading.