🚨 DCA FUTURES: WHY IS THE LIQUIDATION PRICE "ILLUSORY" AND CLOSER THAN YOU THINK? 📉

You DCA to improve your Entry and think that the liquidation price (Liq Price) will be safer? WRONG! In reality, the Liq Price often jumps back very close. Why?

1️⃣ Volume Trap:

A better Entry but the position's Volume has INCREASED.

For example: Holding 1 BTC, if the price drops by 100, you lose 100. But if you DCA to 5 BTC, the price only needs to drop by 20 for you to lose 100.

👉 The speed of "burning" money is many times faster, causing the Margin balance to evaporate extremely quickly.

2️⃣ Maintenance Margin - The Silent Killer 💀:

This is the main reason! The exchange uses a Tiered Margin mechanism.

When you DCA, the total Volume expands (for example >50k$), the exchange will INCREASE the maintenance margin rate. The exchange forces you to "lock up" more capital to hold the order ➡ Available balance decreases ➡ Liq Price is pushed back extremely close.

3️⃣ Cross Margin Mistake:

DCA in Cross = Using defensive money (Balance) to pile on additional burden (Position). The boat is already leaking and you are adding more rocks, sinking super fast.

💡 ADVICE:

- Use the exchange's Calculator to recalculate the Liq Price BEFORE hitting DCA.

- Only DCA when correctly identifying the trend, wrong Entry.

- Stoploss is always better than holding infinite losses.

A beautiful Entry won't save you, Capital management will save you!

$BTC $STABLE $XAU #crypto #Futures #DCA #RiskManagement