@dream45knight
“Leverage liquidation cascades” in crypto markets occur when over-leveraged positions are forcibly closed, amplifying price drops. This chain reaction heightens volatility, as seen in rapid sell-offs. Investors can mitigate risks by reducing leverage, setting stop-loss orders, and maintaining adequate margin buffers. Diversifying across assets and avoiding overexposure during high-volatility periods also helps. Staying informed via real-time exchange data allows proactive adjustments to avoid being caught in these cascades.
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