Monitor the margin ratio
To avoid liquidation, make sure to closely monitor the margin ratio of your futures positions. If the margin ratio reaches 100%, the position will be liquidated.
The margin ratio is calculated as Maintenance margin / Margin balance.
If the margin balance falls below the maintenance margin requirement, the platform will liquidate the position.
- To better withstand price declines, you should maintain a sufficient margin balance in your futures account. A higher margin balance results in a lower liquidation price.
- Use the stop loss feature to reduce potential losses
A stop loss order is a conditional order that is triggered at a specified price once the preset stop loss level is reached. After the stop loss price is triggered, the system will place the order at either the market price or the specified limit price.
- A stop loss help users limit position losses and reduce the risk of liquidation during unfavorable market conditions.