Newbies Must Read 02: Actual Leverage - Key of Controlling Futures Trading Risks

You can check the actual leverage in the trading panel (see the screenshot below):

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Content on the image: The actual leverage of position. When the PNL is positive, the system will lower the actual leverage; when the PNL is negative, the system will raise the actual leverage. Please be aware of the risks when the leverage is high.

 

To control risks and avoid liquidation, you need to control the leverage within a proper range. It is suggested that newbies trade futures according to the following risk levels:

Low risk: 1<Actual Leverage<5

Medium risk: 5≤Actual Leverage<20

High risk: Actual Leverage≥20

 

3 suggestions to lower the liquidation risks:

1.Open positions with low leverage.

2.Reduce positions if the risk level of the actual leverage reaches medium.

3.Set stop loss and take profit.

 

Notes: Trading Futures according to the risk levels can only lower but not avoid the liquidation risk. It is recommended that newbies to control the leverage within 5x, which is more secure.

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