How do I avoid liquidation with trading tools and features?
What's liquidation?
Liquidation occurs when the value of your assets falls below the maintenance margin requirement. This results in your position being forcibly closed to cover the loss. On our platform, it helps prevent traders from owing more than their initial investment.
What are the tools and features to help you?
Maintain a healthy margin level: a key risk metric in tracking healthy measures, you can spot the margin level as on the image below. Liquidation happens when the level reaches 100% and the margin call alert is at 300% (TBA).
Always monitor your margin level
Use stop-loss orders: a stop-loss order automatically closes your position when the market price reaches a predetermined level, limiting potential losses.
Adjust leverage levels: modify your leverage as you prefer. As using high leverage increases the risk of liquidation, consider using lower leverage to reduce potential losses.
Set up liquidation alerts: set up liquidation alerts to notify you when your margin ratio approaches the maintenance level.
Utilize auto-deleveraging (ADL): our ADL system automatically reduces your leverage to help prevent liquidation.
Risk management tools: use our built-in risk management tools, such as portfolio margin and position builder, to better manage your positions.
What happens if you get liquidated?
If liquidation occurs, we'll close your positions at the current market price to cover your losses. Any remaining funds after covering the loss will be returned to your account. It's important to understand the terms and conditions of our liquidation process to be fully prepared.
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