1.Use Stop-Loss Orders
What to Do: A stop-loss order automatically closes your position at a predefined price, helping to limit losses.
Why It Helps: It prevents your position from reaching the liquidation threshold by ensuring losses are capped early.
Tip: Set stop-loss levels based on technical analysis (e.g., below key support levels) rather than using arbitrary numbers.
Before trading live, test different stop-loss strategies in a demo account to see what works best for your approach.

2.Maintain a Healthy Margin Ratio
What to Do: Your margin ratio = (Equity / Used Margin) × 100. A higher margin ratio provides more buffer against sudden price swings.
Why It Helps: Keeping a sufficient margin balance reduces the likelihood of liquidation when the market moves against you.
Tip: If you're holding a long-term position, keep your margin ratio as high as possible to withstand market fluctuations.
Monitor your margin levels frequently, especially during periods of increased volatility, such as major economic announcements
or unexpected market events.

3.Avoid Over-Leveraging
What to Do: Using excessively high leverage (e.g., 20x) significantly increases risk, as even small price movements can lead to liquidation.
Why It Helps: Lower leverage (e.g., 3x–5x) gives your position more room to "breathe," reducing the chances of getting liquidated.
Tip: Before selecting leverage, calculate your maximum acceptable loss. For instance, at 10x leverage, a 10% price move wipes out your position.
Choose leverage that aligns with your risk tolerance and trading strategy.

4.Monitor Positions Actively
What to Do: Regularly check your positions, margin levels, and market conditions to stay ahead of sudden price movements.
Why It Helps: Being proactive allows you to make necessary adjustments before liquidation occurs, such as adding more margin or
closing a position early.
Tip: Set up price alerts on trading platforms or mobile apps to notify you of critical price movements. Never leave high-leverage positions
unattended, especially during volatile market hours or before major economic events.

5.Diversify Your Portfolio
What to Do: Spread your investments across different assets instead of concentrating all capital into a single trade.
Why It Helps: Diversification reduces exposure to single-market volatility, protecting you from drastic price swings in one asset.
Tip: Allocate only a small portion of your trading capital to any single perpetual futures position. Instead of going all-in on one trade,
balance your risk by investing in multiple assets or hedging with spot positions.

6.Understand Funding Rates
What to Do: Be aware of periodic funding payments between long and short traders. Depending on market conditions, you may
pay or receive funding fees.
Why It Helps: Holding a position in a market with high funding rates can gradually erode your profits, especially for long positions.
Tip: Check historical funding rates before opening a trade and avoid holding positions during periods of extreme funding costs.
Some exchanges provide insights into expected funding fees, so use this data to make informed decisions.

7.Use Risk Management Tools
What to Do: Take advantage of risk management tools such as Take-Profit orders, Trailing Stops, and Hedging with spot markets.
Why It Helps: Automating profit-taking and setting predefined risk levels reduces emotional decision-making and prevents unnecessary losses.
Tip: Always pair a stop-loss order with a take-profit order to maintain a favorable risk-reward ratio. If you aim for a 3:1 risk-to-reward ratio,
a stop-loss at -5% should be matched with a take-profit at +15%.

8.Stay Informed and Educated
What to Do: Keep up with market news, technical indicators, liquidation heatmaps, and upcoming macroeconomic events.
Why It Helps: Understanding market trends, news catalysts, and major liquidity zones helps traders anticipate volatility, reducing
unnecessary exposure to liquidation risk.
Tip: Follow key financial events such as Federal Reserve announcements, Bitcoin ETF approvals, or regulatory news, as they often
trigger large price swings. Educate yourself continuously by analyzing past liquidation events and learning from market history.

Final Thoughts
Liquidation isn’t inevitable—it’s a preventable outcome with disciplined risk management. By educating yourself on leverage,
margin, and market mechanics, you can trade perpetual futures confidently. Remember: surviving in volatile markets isn’t about
avoiding losses entirely; It's about controlling your emotions so you can stay in the trade and make rational decisions.
Take Action Today:
Review your open positions.
Adjust leverage and set stop-losses.
Commit to continuous learning.
Trade smart, stay safe, and never risk more than you can afford to lose!
Disclaimer: Trading derivatives involves significant risk. This is not financial advice.