What happens to your funds when you get liquidated on Binance?

10 answers

• MilicodingMay 19, 2025 · 3 months ago
  When your position gets liquidated on Binance, your funds will be used to cover the losses incurred. Liquidation occurs when the value of your position falls below a certain threshold, triggering an automatic sell-off to prevent further losses. The funds from the liquidation will be used to repay the lender if you were borrowing funds for leverage. If you were not using leverage, the funds will be returned to your account balance.
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• Jorge QueirozJun 03, 2021 · 4 years ago
  If your position gets liquidated on Binance, your funds will be used to settle the outstanding debt. This is done to ensure that the lender is repaid and to prevent any further losses. It's important to manage your risk and avoid getting liquidated by setting appropriate stop-loss orders and monitoring your positions.
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• RiatasthanFeb 23, 2023 · 2 years ago
  When your position gets liquidated on Binance, your funds will be used to cover the losses. Binance has a system in place to automatically liquidate positions when they reach a certain threshold to protect both the lender and the borrower. It's important to understand the risks involved in trading on margin and to use leverage responsibly.
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• Divy ObizueMar 08, 2021 · 4 years ago
  Liquidation on Binance means that your position will be automatically closed and your funds will be used to cover the losses. This is a risk management mechanism implemented by Binance to protect traders and lenders. It's crucial to have a solid risk management strategy in place to avoid liquidation and protect your funds.
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• Puguzh MAug 06, 2023 · 2 years ago
  When your position gets liquidated on Binance, your funds will be used to cover the losses and settle any outstanding debt. This is a standard practice in margin trading to ensure that lenders are repaid. It's important to be aware of the risks involved in trading on margin and to carefully manage your positions to avoid liquidation.
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• Sahil NaikMay 19, 2023 · 2 years ago
  When your position gets liquidated on Binance, your funds will be used to cover the losses. This is a necessary measure to protect the lender and ensure the stability of the platform. It's important to understand the risks of leveraged trading and to use stop-loss orders to manage your risk effectively.
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• Sukhveer SagarDec 04, 2023 · 2 years ago
  When your position gets liquidated on Binance, your funds will be used to cover the losses and settle any outstanding debt. This is a standard procedure to protect both the lender and the borrower. It's crucial to have a clear understanding of the liquidation process and to use leverage responsibly to avoid potential losses.
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• Kshitiz ChaturvediAug 07, 2022 · 3 years ago
  When your position gets liquidated on Binance, your funds will be used to cover the losses and repay the lender. This is a risk management mechanism implemented by Binance to ensure the stability of the platform. It's important to carefully manage your positions and use appropriate risk management strategies to avoid liquidation.
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• Saito HeikeMay 12, 2022 · 3 years ago
  When your position gets liquidated on Binance, your funds will be used to cover the losses and settle any outstanding debt. This is a standard practice in margin trading to protect both parties involved. It's important to understand the risks of trading on margin and to use leverage responsibly to avoid liquidation.
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• Bruhn DaltonOct 30, 2023 · 2 years ago
  When your position gets liquidated on Binance, your funds will be used to cover the losses and repay the lender. This is a risk management measure implemented by Binance to protect both parties involved. It's crucial to have a solid risk management strategy in place and to use leverage responsibly to avoid liquidation.
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