What is Automatic Liquidation?
Automatic liquidation is a process where your exchange will automatically close out your positions if your account falls below the required margin level. This is done to protect both you and the exchange from potential losses. When your account falls below the required margin level, it means that you do not have enough funds to cover your losses and the exchange will close out your positions to prevent further losses.
Can I Prevent Automatic Liquidation?
The short answer is yes, you can prevent automatic liquidation on your margin account. There are two ways to do this:
Add Funds to Your Account
If you have decided to add more funds to your account to prevent automatic liquidation, here are the steps you can follow:
Once the funds are deposited into your account, your margin level will increase, and you will be less likely to face automatic liquidation.
Reduce Your Position Size
If you do not have enough funds to add to your account, you can reduce your position size to prevent automatic liquidation. Here's how:
By closing out some of your positions, you decrease your overall margin level, making it less likely for your account to fall below the required margin level and face automatic liquidation.
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