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How to Reduce the Risk of Forced Liquidation
Published on: 2023/08/23 08:30Last Update: 2025/01/01 15:33

Tip #1: Use leverage wisely

CoinW perpetual futures offers a maximum leverage of 200x. When opening positions, do set your leverage ratio according to your personal risk tolerance.

 

Tip #2: Curb your loss

1. Reduce position size: When the index price approaches the 'liquidation price,' you can lower your risk of forced liquidation by reducing your position size.

2. Set stop-loss: It’s always good practice to set your take profit and stop loss. When the last price reaches your stop-loss price, a pre-loaded stop-loss order for your position will be filled.

 

Tip #3: Add margin

For cross-margin mode: Transfer assets to your futures account to increase the margin and reduce the risk of forced liquidation.

For isolated margin mode: Allocate more equity to selected positions to increase your margin, thereby reducing your risk of forced liquidation.

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How to Reduce the Risk of Forced Liquidation
Published on: 2023/08/23 08:30Last Update: 2025/01/01 15:33

Tip #1: Use leverage wisely

CoinW perpetual futures offers a maximum leverage of 200x. When opening positions, do set your leverage ratio according to your personal risk tolerance.

 

Tip #2: Curb your loss

1. Reduce position size: When the index price approaches the 'liquidation price,' you can lower your risk of forced liquidation by reducing your position size.

2. Set stop-loss: It’s always good practice to set your take profit and stop loss. When the last price reaches your stop-loss price, a pre-loaded stop-loss order for your position will be filled.

 

Tip #3: Add margin

For cross-margin mode: Transfer assets to your futures account to increase the margin and reduce the risk of forced liquidation.

For isolated margin mode: Allocate more equity to selected positions to increase your margin, thereby reducing your risk of forced liquidation.

Was this article helpful?
0 out of 0 found this helpful
Limited-Time New User Offer!
Sign up now to claim your exclusive 12000 USDT gift pack!
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Popular Articles