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nemmet

Why did I get liquidated so fast with 20x leverage on Bitcoin?

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Joined: 03-20-26 07:34 AM

First Post Posted on: 03-23-26 09:10 AM
Hi everyone! I decided to get more serious about crypto trading recently because I was only trading on spot before and it started to feel boring. A friend told me he made x2 on his deposit in one evening trading futures, so I got excited too. I deposited some USDT, opened a Bitcoin position with 20x leverage, and thought it would take off. But an hour later I got a liquidation notification, even though the price didn’t seem to move that much. How do you properly calculate an entry when using leverage so you don’t get liquidated on the slightest pullback? And is it true that cross margin is basically a guaranteed way for a beginner to lose the whole deposit, or am I misunderstanding something?

nemmet

Re: Why did I get liquidated so fast with 20x leverage on Bitcoin?

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Joined: 03-20-26 07:34 AM

Reply #: 1 Posted on: 03-23-26 09:11 AM
One more question: I still don’t fully understand the difference between USDⓈ-M and COIN-M. They’re both futures, right? So what’s the point of trading contracts settled in crypto if it’s much easier to track profits when everything is calculated in stablecoins?

robert1

Re: Why did I get liquidated so fast with 20x leverage on Bitcoin?

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Joined: 03-20-26 08:26 AM

Reply #: 2 Posted on: 03-23-26 09:33 AM
It's really unfortunate that you got liquidated, but just about everyone loses their first time. When you are a newbie, using 20 times leverage is quite a gamble. A mere 5% market movement can completely liquidate your position. To make sure that you do not make the same mistake, I would recommend learning through a detailed Binance futures trading guide. My personal favorite is iTrusty, which gave me loads of useful insights. For instance, it explains what cross margin and isolated margin are separately, and it also explains hedge mode and so on. As for what contracts to use, USDⓈ-M is actually what a lot of beginners prefer, since working out profits in stable coins is easier. On the other hand, COIN-M is the choice for those traders who want to hold the coin itself and increase the number of coins they own. P.S. Did you set a stop-loss order in that trade?

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