What to do if the ProBit Global contract liquidates?

After a liquidation on ProBit Global, traders should assess the situation, calculate their losses, withdraw remaining funds, take a break, learn from their mistakes, start trading again cautiously, and use tools like stop-loss orders and proper risk management.

Nov 25, 2024 at 03:22 pm

What to do if the ProBit Global contract liquidates?

In the world of cryptocurrency trading, liquidations are a common occurrence. When a trader's losses exceed their available margin, the exchange will automatically close their position to prevent further losses. This can be a stressful experience, but it's important to remember that it's not the end of the world.

If your ProBit Global contract liquidates, there are a few things you can do to minimize your losses and get back on track.

1. Assess the situation.

The first step is to assess the situation and figure out what went wrong. Were you overleveraged? Did you make a bad trade? Once you know what caused the liquidation, you can take steps to avoid making the same mistake in the future.

2. Calculate your losses.

Once you know what caused the liquidation, you need to calculate your losses. This will help you determine how much money you need to recover. To calculate your losses, subtract the liquidation price from your entry price. Then, multiply the difference by the number of contracts you were trading.

3. Withdraw your funds.

If you have any funds remaining in your ProBit Global account, you should withdraw them as soon as possible. This will help you protect your funds from further losses. To withdraw your funds, go to the "Withdraw" page on the ProBit Global website and follow the instructions.

4. Take a break.

After a liquidation, it's important to take a break from trading. This will give you time to clear your head and reassess your trading strategy. When you're ready to start trading again, make sure you have a solid plan in place.

5. Learn from your mistakes.

Liquidations are a valuable learning experience. By understanding what went wrong, you can avoid making the same mistakes in the future. Take some time to reflect on your trading strategy and identify any areas where you can improve.

6. Start trading again.

Once you've had some time to learn from your mistakes, you can start trading again. Be sure to start small and gradually increase your risk as you become more confident. By following these steps, you can minimize your losses and get back on track after a liquidation.

Additional tips

In addition to the steps outlined above, here are a few additional tips to help you avoid liquidations:

• Use a stop-loss order. A stop-loss order is an order that automatically sells your contracts when the price reaches a certain level. This can help you limit your losses if the market moves against you.
• Don't overleveraged. Overleveraging is one of the leading causes of liquidations. When you overleverage, you're essentially borrowing money from the exchange to increase your trading power. This can be a risky strategy, because if the market moves against you, you could lose more money than you have in your account.
• Manage your risk. Risk management is essential for successful trading. Before you enter a trade, you should always consider the potential risks and rewards. Make sure you have a plan in place for how you will manage your risk if the market moves against you.

By following these tips, you can help avoid liquidations and protect your profits.