Futures are exciting โ big profit potential, but also big risks. The worst? Liquidation โ when the exchange shuts your trade and wipes most of your balance.
Hereโs how smart traders avoid it:
โ Keep Leverage Low
High leverage (50x/100x) = tiny moves can kill your trade. Pros stick to 5x or less to survive market swings.
โ Always Use Stop-Loss
Donโt wait for the system to liquidate you. Set an exit level where losses are manageable. Close on your terms, not the exchangeโs.
โ Manage Position Size
Never go all-in. Use only part of your capital for futures, keep the rest safe. One bad trade should never wipe you out.
โ Control Emotions
Fear, greed & panic = account killers. Stick to your plan, donโt chase pumps, and never revenge trade.
๐ก Pro Tip: In futures, the #1 goal is survival. Stay alive long enough to let consistent profits grow.