Cascade Liquidations and How to Avoid Them
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Cascade Liquidations and How to Avoid Them
Introduction
Cascade liquidations, also known as liquidation cascades or forced liquidations, occur in leveraged cryptocurrency trading when a sharp price movement triggers a chain reaction of margin calls. Exchanges automatically close positions of over-leveraged traders to prevent further losses, flooding the market with sell (or buy) orders that amplify the price swing.
⚠️ Disclaimer: Questo articolo è solo a scopo educativo e informativo. Non costituisce consulenza finanziaria o raccomandazione di investimento. Il trading di criptovalute comporta rischi significativi, inclusa la perdita del capitale investito. Fai sempre le tue ricerche (DYOR) e consulta un consulente finanziario prima di prendere decisioni di investimento.
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