1. Risk level classification (based on a 10,000 yuan account)
2. Key concept illustration
Liquidation (warning stage)
Essence: Insufficient available funds in the account
Trigger point: Risk level ≥80% (varies by company)
Example: When 10,000 capital loses to 8,000 yuan
Forced liquidation (risk disposal)
Execution conditions: Risk level ≤70% (conventional standard)
Handling method:
System automatically closes part of the position
Prioritize closing the position with the largest loss
Result: Account retains remaining funds
Margin call (extreme situation)
Trigger conditions: Continuous limit down/extreme market conditions
Typical characteristics:
Account equity is negative
After closing, still insufficient to cover losses
Legal consequences:
Need to repay debts
May be listed on the credit blacklist
3. Practical risk control suggestions
Three principles to prevent liquidation
Single variety position ≤30%
Set stop-loss level (suggested 3-5%)
Check risk level daily (can be checked via trading software)
Self-rescue before forced liquidation
Add margin (fastest way)
Actively close part of the position
Hedging lock position (requires professional knowledge)
Margin call case warning
2020 Oil Treasure incident:
Investor's capital wiped out
Still owes the bank a huge amount of money
Ultimately, the bank bears part of the losses
Five-level risk warning
100-80%: Normal trading
80-70%: SMS alert
70-60%: Phone notification
60-50%: Forced liquidation
<50%: Activate margin call plan
Margin monitoring formula
Safety margin = (account equity - position margin) / total equity
Recommended to maintain >30%
5. Newcomer pitfall avoidance guide
Leverage selection recommendations
Commodity futures: 3-5 times
Stock index futures: 1-2 times
Digital currency: ≤10 times (perpetual contracts)
Response to extreme market conditions
Avoid major data release times
Reduce positions before holidays
Immediately hedge against black swan events
Real case: A trader with 100,000 capital fully invested in rebar, faced a 4% reverse fluctuation triggering forced liquidation, resulting in a loss of 60,000 yuan. If using a 30% position, the same fluctuation only results in a loss of 18,000 yuan.
Remember: The real risk is not in market fluctuations, but in uncontrolled positions. Before opening a position, calculate: If the reverse fluctuation is 3 times ATR, can my account survive?
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