Margin Trading Risk Warning

Risk Warning

Margin trading refers to the practice of magnifying your actual funds by borrowing assets. It is required that you should return the borrowed assets within a specified period and pay the borrowing interest. Margin trading not only allows you to magnify gains with fewer funds, but can also saddle you with amplified losses when the market moves against you. Therefore, we strongly advise entry-level users not to use highly leveraged trading to avoid forced liquidation or even bankruptcy.

 

How to lower the forced liquidation risk?

1. Adjust your leverage and positions reasonably.

2. Set Stop-Limit Order or Stop-Market Order properly to secure profits and minimize potential losses.

3. Add margin on your positions in time when you receive an email risk reminder, and make sure the risk rate is above 110%.

4. Maintain a high risk rate to avoid liquidation by market fluctuation.

 

Related Articles

What is Margin Insurance Fund 

Crypto Loan and Margin Trading Service Terms 

Disclaimer: The content provided on this website is for informational purposes only and does not constitute investment advice. The information provided is not intended to be a substitute for professional financial advice, consultation, or recommendations. Users are encouraged to consult with a qualified financial advisor before making any investment decisions. The website owners and authors do not assume any liability for any loss or damage that may result from reliance on the information provided. All investments carry risk, and past performance is not indicative of future results.