What precautions should I take to avoid liquidation when trading with 100x leverage on BitMEX?

3 answers

• Ajay JadhavJan 29, 2024 · 2 years ago
  When trading with 100x leverage on BitMEX, it's crucial to carefully manage your risk to avoid liquidation. Here are some precautions you should take: 1. Set a stop-loss order: This will automatically sell your position if the price moves against you, limiting your potential losses. 2. Use proper position sizing: Avoid risking too much of your capital on a single trade. Consider using a position size calculator to determine the appropriate amount to trade. 3. Monitor the market closely: Keep an eye on price movements and news that may impact the market. Stay informed and be prepared to adjust your positions accordingly. 4. Diversify your portfolio: Don't put all your eggs in one basket. Consider diversifying your trades across different cryptocurrencies or trading strategies. Remember, leverage amplifies both profits and losses, so it's important to approach it with caution and always be prepared for potential liquidation.
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• Elvinas NavardauskasFeb 16, 2021 · 5 years ago
  Liquidation risk is a real concern when trading with 100x leverage on BitMEX. To protect yourself, consider these precautions: 1. Start with a smaller leverage: If you're new to trading or not comfortable with high leverage, it's wise to start with a lower leverage ratio. Gradually increase it as you gain experience. 2. Keep an eye on your margin level: BitMEX has a liquidation price calculator that can help you monitor your margin level. Make sure you have enough margin to sustain market fluctuations. 3. Use a trading strategy: Develop a trading strategy that includes risk management techniques such as setting profit targets and stop-loss orders. Stick to your strategy and avoid impulsive decisions. 4. Stay updated with BitMEX's liquidation policies: Familiarize yourself with BitMEX's liquidation process and policies. Understanding how liquidations work can help you make informed decisions and minimize the risk of liquidation. Remember, trading with high leverage can be highly profitable but also carries significant risks. Always trade responsibly and only risk what you can afford to lose.
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• JEYUKJOAFeb 07, 2025 · 9 months ago
  When trading with 100x leverage on BitMEX, it's important to take precautions to avoid liquidation. Here are some tips: 1. Understand the risks: Trading with high leverage amplifies both potential profits and losses. Make sure you fully understand the risks involved before trading with 100x leverage. 2. Set realistic expectations: Don't expect to make huge profits overnight. Trading with high leverage requires careful planning and patience. Set realistic profit targets and don't get carried away by greed. 3. Consider using a platform like BYDFi: BYDFi offers a range of risk management tools and features that can help you minimize the risk of liquidation. Their advanced trading platform allows you to set stop-loss orders and monitor your margin level easily. Remember, trading with high leverage can be extremely volatile. It's important to approach it with caution and always be prepared for potential liquidation.
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