No Summary provided as the original text is short
- Liquidation: The forced closing of a leveraged trading position when losses exceed a set threshold, preventing further losses to the lender or exchange.
- Leverage: The use of borrowed funds to increase trading exposure, amplifying both potential gains and losses.
- Crypto Market Volatility: Frequent and significant price fluctuations in digital assets, driven by market sentiment, liquidity, and macroeconomic factors.