Yes, you can prevent automatic liquidation on your margin account by taking specific actions. This guide explains what automatic liquidation is and outlines two key methods to avoid it: adding funds to your account or reducing your position size to maintain your required margin level.

Automatic liquidation is a process where your exchange will automatically close out your positions if your account falls below the required margin level. This action protects both you and the exchange from potential losses. When your account falls below the required margin level, it indicates that you do not have sufficient funds to cover your potential losses, prompting the exchange to close out positions to prevent further financial risk.

If you receive a margin call, there are two primary methods to prevent automatic liquidation on your margin account. Acting quickly is crucial to maintain control over your positions.

Tip: Understanding your margin requirements and monitoring your account balance closely can help you anticipate and avoid margin calls. For more details on how your balance is used, see Does the System Use Your Entire Balance for Each Trade?

One effective way to prevent automatic liquidation is to add more funds to your account. This increases your account's equity, bringing your margin level back above the required threshold.

Once the funds are deposited into your account, your margin level will increase, making it less likely for you to face automatic liquidation. You can typically initiate a deposit through your exchange's platform. To get started with managing your account, visit Get Started.

If adding funds is not an immediate option, you can reduce your position size to prevent automatic liquidation. This involves closing out some of your open trades.

By closing out some of your positions, you decrease your overall margin requirement. This action makes it less likely for your account to fall below the required margin level and face automatic liquidation. Review your open positions and consider which ones to close to reduce your exposure.

If you have further questions about managing your margin account or preventing liquidation, please contact our support team for assistance. Remember, Cryptobots does not offer investment advice. For more information, please review our Investment Advice Policy.