Save Your Trades and Avoid Liquidation with Hedge Mode on Binance Futures
If you’re stuck in a losing trade or nearing liquidation, this method can protect your assets:
The Strategy
1. Enable Hedge Mode:
• Go to your Binance Futures settings.
• Under “Position Mode Settings,” enable Hedge Mode. This allows you to hold both long and short positions for the same trading pair.
2. Open an Opposite Trade:
• Place a trade in the opposite direction with the same margin and leverage as your current losing trade.
• Example: If your $100 long position is losing, open a $100 short position.
This will balance your losses: as one trade loses, the other gains, keeping your equity safe.
How It Works
• Risk Balancing: Losses from one trade are offset by profits from the opposite trade.
• Avoids Liquidation: Prevents your account from being wiped out.
• Gives You Time: Hold both positions until the market stabilizes. Once conditions are favorable, close the unwanted trade and move forward.
Example
You’re stuck in a BTC/USDT long position with:
• $100 margin
• 10x leverage
The market moves against you, and you’re nearing liquidation. To prevent this:
• Open a short trade with $100 margin and the same leverage.
• Both trades will balance out, giving you time to wait for better market conditions.
When the market becomes analyzable, close the trade you no longer need and continue with the profitable one.
Why Use Hedge Mode?
• Prevents liquidation.
• Safeguards your equity.
• Offers flexibility to handle unpredictable markets.
Try it now! Enable Hedge Mode on Binance Futures and protect your trades. Have questions? Drop them, and I’ll cover more tips in the next post!