What strategies can be used to avoid liquidation on BitMEX?

3 answers

• Nov 24, 2021 · 3 years ago
  One strategy to avoid liquidation on BitMEX is to set a stop-loss order. This allows traders to automatically sell their position if the price reaches a certain level, limiting potential losses. Additionally, maintaining a sufficient margin level is crucial. By ensuring that the margin level is above the liquidation level, traders can avoid being liquidated. It's also important to closely monitor the market and stay updated on any news or events that may impact the price. This can help traders make informed decisions and adjust their positions accordingly.
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• Nov 24, 2021 · 3 years ago
  Another strategy is to diversify your portfolio and not put all your eggs in one basket. By spreading your investments across different cryptocurrencies or trading pairs, you can reduce the risk of being heavily impacted by a single price movement. Additionally, using leverage responsibly is key. While leverage can amplify profits, it can also magnify losses. Traders should carefully consider their risk tolerance and only use leverage that they are comfortable with.
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• Nov 24, 2021 · 3 years ago
  At BYDFi, we recommend using a combination of risk management techniques to avoid liquidation on BitMEX. This includes setting stop-loss orders, closely monitoring the market, and diversifying your portfolio. It's also important to stay disciplined and not let emotions drive your trading decisions. Remember, trading involves risks, and it's essential to have a well-thought-out plan and stick to it.
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