Strategy without Stops:
How to Save Money During Liquidation!
💡This article is intended for those trading on isolated margin and consciously taking risks, where the absence of a stop = liquidation.
There is a strategy where the trader determines their maximum risks for the trade in advance and does not set a Stop-Loss, considering liquidation as their "stop."
❗️ Important note: In such liquidation, the exchange takes all your funds allocated for this position.
💡 Life hack: Save part of the funds during inevitable liquidation
Here's how you can save 10-20% of funds even if the price is close to the liquidation level:
Let's consider an example with the STRK coin.
Example: You opened a short position on isolated margin.
Your liquidation level: 0.1150
🛠 Your actions:
Set a Stop-Loss (or Close Position) order just before the liquidation price.
VERY IMPORTANT: As a trigger ("Stop" / "Trigger" field), choose Last Price, NOT Market Price!
Set the stop price, for example, at: 0.11495 (this is 0.00005 above the liquidation level).
✅ Result: In this scenario, your position will close at Stop-Loss before the exchange's liquidation mechanism activates, allowing you to save 10% to 20% of the funds from the trade!
⚠️ Why does this work and what is the difference?
Last Price: This is the price you set. It will work precisely, closing the position before liquidation.
Market Price: During strong fluctuations or slippage, this type of order may close you with a greater loss, depending on price jumps.
🔥 Bonus during a sharp jump: Sometimes, when the price sharply breaks your set Stop-Loss (for example, 0.11495) and even the liquidation level (0.1150), the exchange may not close you immediately at liquidation, giving a second chance to recover the trade.
🔔 Don't forget about Funding!
Pay attention to the funding period (Funding Fee)!
Funding can both add to and reduce your position.
This leads to a shift in the liquidation price both ways.
Share in the comments if you knew about this strategy? 👇
🤖The post is prepared for the community @TradeNet_3000_ai for Users #Binance and beyond🤩
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