How to Reduce Margin Liquidation Risk Rate

You can reduce the margin liquidation risk rate through the following 3 methods:


Method 1: Use margin appropriately

Take the BTC/USDT margin market as an example and assume that the margin market supports up to 5X. When borrowing coins, you can control the margin multiples by borrowing the amount of coins according to your acceptable risk rate. If your principal is 10 USDT, the maximum borrowing amount is 40 USDT. At this time, if you only borrow 10 USDT, it means that you open 2X margin.


Method 2: Stop loss in time

When the Risk Rate is close to the Liquidation Rate, the risk of liquidation can be reduced by reducing the number of positions.


Method 3: Increase margin

You can also reduce the risk of liquidation by transferring assets to your margin account.