Futures Leverage Trading How to Avoid Liquidation

Here are some simple rules and guidelines to follow when trading futures to avoid liquidation. When you take a leveraged position it means you are trading a position with more funds than you actually have. There are multiple things to consider BEFORE taking a leveraged position to avoid liquidation, the two most important are:

1. Planning for deviation or planning your exit/stop loss
2. Managing your risk exposure/margin properly

If you are setting up your technical analysis and the market is going against your ideas, there is no reason for you to keep your position open. Holding onto a losing position is the number one way to get wiped. If you are using leverage in your trades your calculations need to be precise and if they aren’t met it can be beneficial to your pockets if you have a stop loss enabled. Plotting a stop loss BEFORE you even enter the trade will save you a lot of sorrows in the long haul.

If you are bad at planning or you just plain don’t like using stop losses then your saving grace will be your risk management. If you only have $1,000 to trade futures with and used it entirely as stated previously a -10% movement would liquidate your position. However, if you had enough margin to sustain that fallout you could avoid liquidation. This means if you had managed your risk properly you would have not gotten wiped. So if you had taken that same trade with $1,000 at 10x *BUT* you had $10,000 in your futures wallet, you would have had enough margin to sustain a -100% price fall out. Your position *should not* experience more than -100% fallout and therefore you should not be liquidated on your futures position. This means if you only take a position with 10% of your capital at 10x leverage you can avoid liquidation.

This is directly proportional as different leverage amounts are applied.

10% of available capital at 10x to avoid liquidation
5% of available capital at 20x to avoid liquidation
2% of available capital at 50x to avoid liquidation
1% available capital at 100x to avoid liquidation

Think like this - using 50x leverage means a position will be liquidated at -2% without marginal assistance. Meaning a trade with $1,000 will be wiped if the market falls -2% without you having any more funds in your futures wallet.
Using 100x leverage means a position will be liquidated at -1% without marginal assistance. Meaning a trade with $1,000 will be wiped if the market falls -1% without you having any more funds in your futures wallet.

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Видео Futures Leverage Trading How to Avoid Liquidation канала DeadlyCrypto