๐ค How I Manage to Get 0 (Nil) Liquidation Price while doing Futures? [Beginners' Guide ๐]
โจ If you're reading this Post or if this post reaches you well, you don't need to go for other tutorials regarding how to avoid Liquidation.
I will break everything One By One....
๐ First of All we should know what is Liquidation?
๐ In futures trading, liquidation (often called getting liquidated) means your position is automatically closed by the exchange because your margin (collateral) is no longer enough to keep the trade open.
๐ฏ Say for Example (I will take $100 for All the below examples)
You Opened a Position with Whole of your Capital or even 50% of your capital, So your position size will be very bigger than your capital (Collateral/total Futures Wallet)
If the Coin Goes Against you with even a Minimum Variation you will see your profit and losses to be very bigger,
In case of Loss of oringinal capital (Used as collateral) the exchange will automatically square off your position and your wallet will get empty.
Now comes the Main thing โจ
๐ค How to Avoid Liquidation (How to Open Positions with 0 (Nil) Liquidation Price)
๐ If you follow Me you might know about my 0.3% strategy.
๐ Very Simple you just have to open positions worth 0.3% of your initial capital (total future wallet).
Like as i said if you have $100 your initial capital used should be $0.3 and your order size will be $15 with 50X Leverage.
You will see 0 (Nil) liquidations in Long Positions and in Short the liquidation will be very far as to reach ๐
Hope you understood, you need to be good in maths so as to find 0.3% of your total capital.
This is enough for you too start your futures journey risk free.
Don't chase for big profit, you will get decent profit with this strategy, Monthly ROI will be More than 30% with Less risk โ
โ ๏ธ But as always Trading in Any asset involves risk please DYOR before taking any financial decision.
โจ This is Trading, This is life, Losses are lessons, Profits are Motivation โค๏ธ
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