#NewsTrade How to Set Your Liquidation Price to Zero (Yes, Really)
In the fast-paced world of futures trading, profits can be massive—but so can the risks. One of the biggest dangers? Liquidation. It’s every trader’s nightmare: the market moves against you, and your entire position gets wiped out.
Even if you’ve done the research, followed the charts, and trusted your analysis, the market doesn’t always play fair. That’s why your first priority should never be chasing profit—it should be survival. And the key to surviving? Setting your liquidation price as close to zero as possible.
Let’s break it down.
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What Is Liquidation, Really?
In futures trading, liquidation happens when your position doesn’t have enough margin left to cover ongoing losses. Your exchange steps in and closes the trade automatically to protect itself. When that happens, you lose the margin you’ve put up—sometimes all of it.
This usually happens when you use high leverage without proper risk management. But what if there was a way to remove liquidation from the equation?
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The Zero Liquidation Strategy
Here’s the big secret: you can bring your liquidation price to zero (or at least very close to it) by carefully managing leverage, margin, and position size. This isn’t magic—it’s math.
Step 1: Use Low or Zero Leverage
The higher your leverage, the closer your liquidation price is to your entry. If you reduce your leverage (or even go 1x), you give your trade a massive buffer. In some cases, 1x leverage means your liquidation price is literally zero, because your position is backed fully by your own capital.
Step 2: Add Margin Strategically
If your position is under pressure, instead of letting it hit liquidation, top it up with more margin. Adding funds to your position increases the amount your trade can move before liquidation hits.
Step 3: Hedge Smartly
Open opposite positions on correlated or inverse assets. This way, if one goes south, the other cushions the blow. It’s like a safety net that keeps you in the game while the market does its thing.
Why Most Traders Get Liquidated
It’s not just bad analysis—it’s overconfidence and poor planning. They go in with 10x or 20x leverage, thinking they’ll catch a quick move and cash out. But one unexpected candle and their position is gone. Game over.
Smart traders know the real game isn’t about hitting home runs—it’s about staying in the market long enough to win over time.
Is This Strategy for Everyone?
If you’re looking for quick profits, using no leverage might sound boring. But if you’re focused on long-term survival, protecting your capital, and growing your account consistently, this method is a game-changer.
Bottom Line: Play to Stay
Liquidation is avoidable. With the right strategy, you can give your trades the breathing room they need—even in the most volatile markets. Set your liquidation price to zero, manage your risk like a pro, and stop giving your money away to the market.
Because in futures trading, the real win is staying alive.#NewsTrade #BinanceAirdropNXPC #TradeWarEases #TradeStories $ETH $SOL $PNUT