3EX Futures Trading: Avoiding Forced Liquidation with Different Margin Modes
Ensuring the safety of your funds is always a paramount concern in the world of cryptocurrency trading. As a trusted platform in the realm of crypto asset trading, 3EX is committed to providing a secure and stable trading environment. This article will delve into the two margin modes offered by the 3EX futures trading platform and provide detailed insights into how to effectively utilize these modes to avoid forced liquidation, ensuring the utmost protection for your funds.
The Core Role of Margin Modes
In futures trading, margin modes are designed to strike a balance between traders’ investment returns and risks. 3EX offers two main margin modes: Cross Margin and Isolated Margin. Cross Margin utilizes the entire account balance to support trading positions, providing traders with greater flexibility and opportunities. Isolated Margin, on the other hand, emphasizes precise risk control and fund diversification. Each trading position has an independent margin, ensuring that the loss in a single position does not affect the margin of other positions. These modes not only impact traders’ leverage and position sizes but also play a significant role in fund safety.
Cross Margin Mode: Flexibility and Mitigation of Liquidation Risk
Cross Margin Mode is suitable for traders seeking greater investment opportunities. However, while pursuing profits, we encourage you to judiciously employ the following methods to mitigate the risk of forced liquidation:
Moderate Leverage Ratio: In Cross Margin Mode, selecting an appropriate leverage ratio helps control position size and mitigates the risk caused by market fluctuations.
Sufficient Margin: Maintain an ample margin balance within the allowable range of the margin ratio to avoid forced liquidation due to market volatility.
Isolated Margin Mode: Precise Diversification and Robust Strategy
Isolated Margin Mode prioritizes risk diversification and precise risk management. To ensure the safety of your funds, we offer the following recommendations:
Position Allocation: Allocate funds wisely by distributing them among different positions to reduce the impact of losses in individual positions on the overall fund.
Reserved Margin: In Isolated Margin Mode, reserve sufficient margin to withstand market fluctuations. Set reasonable margin alerts and adjust positions promptly to prevent forced liquidation.
Whether you choose Cross Margin or Isolated Margin, the 3EX platform provides comprehensive support:
Margin Alerts: Our platform regularly sends margin alerts to prompt you to adjust positions or add margin promptly to prevent forced liquidation.
Independent Margin Settings: In Isolated Margin Mode, each trading position has an independent margin, ensuring that the loss in one position does not affect the safety of other positions.
Stringent Risk Monitoring: We implement rigorous risk monitoring measures, regularly reviewing market conditions, and taking necessary actions to ensure the safety of your funds.
In conclusion, the 3EX futures trading platform is dedicated to ensuring the utmost protection for your funds through different margin modes and corresponding security measures. By effectively utilizing the various margin modes in your trading journey, you can avoid forced liquidation and achieve a more robust trading strategy.
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