3 Strategies to Avoid Getting Liquidated on Futures Trading.
1. Hedge Mode.
Binance gives you a chance to trade through two modes; one-way mode or hedge mode.
Hedge mode allows you to go Long and Short on the same pair. You set your account on Hedge mode by going to futures' settings>features> position mode
Hedge mode is perfect for highly volatile pairs like $PEOPLE manipulated pairs like $TRB
2. Isolated Margin Mode
When your trading balance is over $1000, you should shift from cross-margin mode to isolated margin mode.
Under Isolated margin mode, you only assign specific amounts like $100 from $1,000, meaning you can only lose $100 from an individual trade.
However, people with small balances usually use cross-margin mode, leaving them at risk of getting liquidated.
3. Stop-Loss (SL)
Make SL your friend as you trade. Leaving your trading pairs to the fate of a volatile crypto environment will get your account blown and you will hate futures trading forever.
Try these three strategies to reduce your risks, but crypto trading will continue to be risky due to volatility in the market.