liquidationtruth

Here’s the harsh reality behind liquidations in crypto trading and where your funds really go:

1️⃣ The Exchange’s Profit: When you’re liquidated, the exchange (like Binance) collects a liquidation fee straight from your collateral. They're essentially the house in this game, and they always secure a win, no matter the outcome of your trade.
2️⃣ The Other Traders Benefit: The counterparties on the opposite end of your trade are in the perfect position to profit when your position is liquidated. They stand to gain from your loss, making it a win for them as their trades move forward.
3️⃣ The Insurance Fund: If there's any leftover collateral after the liquidation, it’s funneled into the exchange’s insurance fund. This reserve helps cushion the platform against sudden market crashes or unforeseen events, keeping the system stable.
In conclusion, when you get liquidated, the exchange collects their fees, opposing traders benefit, and your remaining funds go into a safety net for the exchange. It’s a tough lesson, but understanding the process is key to making better trading decisions in
the future.

#LiquidationTruth #CryptoTrading #BinanceInsights
#MarketRealities