Procedure of saving your money from liquidation?š„
šLiquidation happens when an investor's position is forcibly closed by a broker or exchange due to insufficient funds in the account to cover losses. Here are key strategies to avoid liquidation:
š. šš¬š šš«šØš©šš« šš¢š¬š¤ ššš§šš šš¦šš§š
šŗšš šŗššš-š³ššš š¶šš
ššš: Place stop-loss orders to automatically sell a position if its price moves against you beyond a certain point, limiting potential losses.
š. ššš¢š§ššš¢š§ šš®ššš¢šš¢šš§š ššš«š š¢š§
Ensure your account has enough margin (funds) to cover the open positions. Regularly monitor your balance to avoid falling below the required margin level, which could trigger liquidation.
š. šš¢šÆšš«š¬š¢šš² ššØš®š« ššØš«šššØš„š¢šØ
šŗššššš
š¹ššš: Avoid putting all your funds into one asset or position. Diversifying helps to mitigate risk, as losses in one area may be offset by gains in another.
š. ššØš§š¢ššØš« ššš«š¤šš ššØš§šš¢šš¢šØš§š¬
Stay informed about market trends, news, and events that could impact the assets you hold. Significant price movements, especially in volatile markets like cryptocurrencies, can lead to liquidation if not managed properly.
š. ššÆšØš¢š šš¦šØšš¢šØš§šš„ šš«ššš¢š§š
Emotional decision-making can lead to taking excessive risks, such as over-leveraging or failing to cut losses in time. Stay disciplined and stick to your risk management strategy.
š. šš¬š šš¢š¬š¤-ššØ-ššš°šš«š šššš¢šØš¬
Establish a favourable risk-to-reward ratio for each trade (for example, risking $1 to potentially earn $3). This helps you focus on trades with higher reward potential relative to the risks involved.
