How to Reduce Futures Liquidation Risk Rate


1. Choose the Leverage Wisely

CoinEx supports up to 100x leverage in Futures trading. When opening a position, please be sure to choose the leverage at your acceptable level of risk.

For example, CoinEx supports up to 100x leverage for BTCUSD Inverse Contract. Assuming your capital is 1 BTC, and you choose 5x leverage when opening positions (5x leverage means the maximum openable amount for you is 5 BTC). However, to reduce risk to a bearable level, you can set your buying/selling amount at 2 BTC. In this case, your actual leverage is 2x, and your forced liquidation rate will be reduced (comparing to 5x leverage).

2. Stop Loss in Time

(1) Manually: When the Mark Price is about to meet the Forced Liquidation Price, you can reduce your positions manually to avoid forced liquidation.

(2) Systematically: You can also preset a Stop Price to stop loss in TP/SL Settings. When the Mark Price or the Latest Price reached your Stop Price, all your positions will be closed at the Market Price systematically. For more details, please refer to How to Take Profit & Stop Loss in Futures Trading?


3. Increase Margin

By transferring assets into Futures Account, you can increase your position margin and reduce the risk of forced liquidation.