Potential mistakes and risk management:
1. High Leverage Usage: Using 25x, 30x, and 46x leverage significantly increases risk, making losses amplify quickly. Lower leverage would help manage risk better.
2. No Stop-Loss Orders: Not using stop-loss orders exposes you to significant drawdowns. Setting stop-loss levels can minimize potential losses.
3. Overexposure to Multiple Trades: Having multiple positions open at high leverage increases your exposure. Consolidate positions and focus on fewer trades.
4. Poor Entry Timing: The entry prices compared to the current mark prices indicate the trades may have been entered at less-than-optimal points. Perform detailed technical analysis before entering trades.
5. Lack of Hedging Strategies: Hedging can help minimize losses during adverse market movements. Consider opening opposite positions or using options for protection.
°°°°Solutions & Advice
Here are five ways to avoid liquidation in leveraged trading:
1. Use Lower Leverage: Lower your leverage to reduce the risk of liquidation. High leverage amplifies small price movements, increasing the chance of liquidation.
2. Set Stop-Loss Orders: Place stop-loss orders to exit trades before the price moves too far against you. This minimizes losses and protects your margin.
3. Maintain a Higher Margin Ratio: Keep your margin balance well above the maintenance margin to avoid forced liquidation. Add funds to your account if the margin ratio drops too low.
4. Monitor Market Conditions Closely: Stay updated on news and market trends that could cause volatility. Avoid trading during highly unpredictable market conditions.
5. Diversify and Hedge Positions: Avoid putting all your capital into one trade. Hedge risky positions with opposite trades or diversify across different assets to reduce overall risk.
By following these strategies, you can effectively minimize the risk of liquidation.
