High Leverage- High Profit & High Risk

How to Avoid Liquidation Risk

Control Leverage Use moderate leverage to avoid overexposing your position. Lower leverage provides more buffer during market fluctuations.

Set Stop-Loss Place reasonable stop-loss levels for every trade to limit potential losses and prevent liquidation from sudden market moves.

Adjust Positions Dynamically Regularly adjust your position size based on market conditions and account balance to avoid overloading your margin.

Monitor Margin Levels Maintain sufficient margin ratios. Add funds or reduce positions when your margin approaches the minimum requirement.

Stay Updated on Market Risks Keep track of market trends and major news events. Avoid high-leverage trades during volatile periods.

Use Hedging Strategies Employ hedging to offset directional risk and reduce the likelihood of liquidation during extreme market movements.

Trade in Liquid Markets Focus on trading pairs with high liquidity to minimize slippage, which could lead to unexpected liquidation.