The advantage of manual liquidation is the ability to control the process of closing the position and potential protection against losses. Unlike automatic liquidation, manual closure allows the trader to choose the best moment to exit the position, taking into account the current market situation and their own strategies, as well as avoiding undesirable losses that may arise from forced closure by the exchange.
More details:
Control over the closing price:
Manual liquidation allows the trader to determine the price at which the position will be closed. This can be important if the trader believes that the price at which the automatic liquidation system will close the position will be unfavorable.
Ability to react to market changes:
In a rapidly changing market environment, manual liquidation allows the trader to quickly react to market fluctuations and close the position at the most suitable moment, without waiting for the automatic system to trigger.
Minimization of losses:
In some cases, automatic liquidation may occur at a price significantly lower than expected, leading to substantial losses for the trader. Manual liquidation helps avoid such situations if the trader closely monitors the market and timely closes the position.
Adherence to trading strategy:
Manual liquidation allows the trader to adhere to their trading strategy, which may involve specific levels of losses or profits that must be closed when reached. Automatic liquidation may trigger prematurely or, conversely, not trigger if the price reaches the specified level.
However, it is important to remember that manual liquidation requires constant market monitoring and can be riskier if the trader does not have sufficient experience and knowledge.