High leverage is one of the conditions for liquidation.


Be sure to control leverage properly.

Novice ≤ 5x,
Experienced traders ≤ 10x,
Never use leverage above 20x

- 5x: A 20% adverse move will trigger liquidation;

- 10x: A 10% adverse move approaches forced liquidation;

Aggressive - not exceeding 20x: A 5% move is dangerous.

Full position all-in is the second condition for liquidation:
Single trade risk ≤ 1%–2% of the account (common for professional traders)

- Account $10,000: Max loss per trade $100–$200;

- Formula: Position size = (Account × 1%) ÷ Stop-loss points.

Total margin for open positions ≤ 30% of the account, leaving 70% as buffer to prevent extreme market moves and slippage.



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