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What should I do if I don't close my position after being liquidated?

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Release: 2024-07-30 16:16:02
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Answer: Response measures for not closing a position after a liquidation include: replenishing margin, waiting for the market to reverse, reducing leverage, dividing positions and setting stop losses. Detailed description: Supplementary margin: Supplement margin by transferring account funds or borrowing money to avoid forced liquidation. Wait for the market to reverse: wait for the market to rebound or fall, increase the value of the position, and replenish the margin. Reduce leverage: Reduce the margin required for a position and reduce the risk of liquidation. Splitting operation: Split the position into multiple small positions to spread the risk. Set stop loss: when the market price hits the stop loss point, automatically close the position and control losses

What should I do if I dont close my position after being liquidated?

Countermeasures for not closing the position after liquidation

liquidation means that investors lose money due to asset value in contract transactions A situation in which the margin cannot be repaid due to a decline in price, resulting in the position being forced to be liquidated. Not closing positions means that investors do not take the initiative to close positions, but wait for the market to reverse.

Countermeasures:

1. Supplementary margin

  • The most urgent measure is to replenish margin to avoid further margin calls (if the position cannot be maintained after the margin call, the position will be forced to be liquidated).
  • You can replenish the margin by transferring account funds, borrowing, etc.

2. Wait for the market to reverse

  • If the position is long, you need to wait for the market to rebound. When the asset price rises, the position value will increase, thus replenishing the margin.
  • If the position is short, you need to wait for the market to fall. When the asset price drops, the position value will increase, thus replenishing the margin.

3. Reduce leverage

  • Reducing the leverage multiple can reduce the margin required for a position, thereby reducing the risk of liquidation.
  • You can adjust the leverage on the contract platform or reduce the leverage through the contract position settings.

4. Splitting operations

  • Splitting a position into multiple small positions can reduce the risk of a single position and improve the risk resistance of the position.
  • You can open multiple positions on different exchanges and different contract types.

5. Proper stop loss

  • Set a reasonable stop loss point. When the market price hits the stop loss point, the position will be automatically closed to control losses.
  • Stop loss points should be set based on market volatility and position risk level.

Note:

  • There is a risk in waiting for the market to reverse, and there may be further declines or increases, resulting in expanded losses.
  • Supplementing margin and reducing leverage will affect the profit potential of the position and need to be weighed based on the actual situation.
  • Dividing positions and stop-loss operations can reduce risks, but there is no guarantee that liquidation will be avoided.

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