How to Avoid Liquidation?
Set stops. Even those who generally don't use them can place a stop a few points before liquidation to close without additional costs.
Keep in mind that if multiple positions are open, the liquidation price might shift.
✔️ Why It's Important
Usually, traders experience despair during a position liquidation. They might tell themselves, "whatever will be" when the price is close to forcing a position closure. However, if this isn't your last trade in life, the remaining amount in your account will be crucial. You'll remember it when replenishing the deposit, appreciating that decision. Also, it's essential to understand - this is your mathematical expectation. If you occasionally face position liquidations, you're shifting it against your favor due to additional costs.
