How can I use OKEx's liquidation protection feature to avoid forced liquidation ?

[Curtis]

I'm new to cryptocurrency trading and I'm looking to understand how I can use OKEx's liquidation protection feature to avoid forced liquidation.

I understand that liquidation protection allows traders on OKEx to use insurance funds to avoid liquidation when the market moves against them. But I'm not sure how exactly it works. Does it require me to deposit a certain amount of money? How do I know if I'm eligible?

I've been looking for information about this online, but I can't find any comprehensive explanations. Can anyone here help me understand the process of using this feature? Any advice would be much appreciated.

 

[Hannah]

OKEx’s liquidation protection feature is a useful tool that allows traders to protect their positions from forced liquidation. This feature helps traders to protect their assets and avoid being liquidated due to sudden market movements. This article will explain how to use this feature to its fullest potential and how it can be used to avoid forced liquidation.



OKEx’s liquidation protection feature is designed to protect traders from being liquidated due to sudden market movements. The feature works by setting a price limit, which is the maximum price that a trader is willing to pay for a certain asset. If the price of the asset exceeds this limit, the order will be canceled and the trader’s position will remain intact.



Setting a price limit is a simple process. First, the trader needs to log into their OKEx account and navigate to the “liquidation protection” section. Here, they can set the price limit for the asset they are trading. Once the limit has been set, the trader can be assured that their position will not be liquidated if the market moves against them.



Using OKEx’s liquidation protection feature can be beneficial in a number of ways. Firstly, it can help to protect traders from being liquidated due to sudden market movements. Secondly, it can help to reduce the amount of time and effort needed to monitor the markets and adjust positions accordingly. Lastly, it can help to reduce the risk of large losses due to unexpected market events.



OKEx’s liquidation protection feature is a useful tool that can help traders to protect their positions and avoid being liquidated due to sudden market movements. By setting price limits, traders can be assured that their positions will remain intact if the market moves against them. The feature is easy to use and provides a number of benefits, making it an ideal tool for traders looking to protect their assets.

 

[Energy-Web-Token]

OKEx's liquidation protection feature allows traders to avoid forced liquidation by providing them with an extra margin buffer. This buffer is used to absorb losses when the market moves against the trader's position. This feature is designed to help traders manage their risk and avoid liquidation in volatile markets. According to OKEx, its liquidation protection feature “protects traders from sharp price movements and reduces the risk of liquidation”. Furthermore, OKEx also offers an auto-deleveraging feature which helps traders liquidate their positions in a timely manner when their positions cannot be fully covered by the liquidation protection feature.

 

[Crystal]

OKEx's liquidation protection feature allows traders to set a "Liquidation Price" which is the price at which their position will be liquidated if it reaches that level. This allows traders to protect their positions from being forced liquidated due to adverse market conditions. To use this feature, traders must first deposit a certain amount of collateral into their OKEx account, then set the Liquidation Price for their position. If the market price of the asset reaches the Liquidation Price, the position will be liquidated and the trader's funds will be returned to their account. Liquidation Protection, Liquidation Price, Collateral, OKEx

 

[KusamaKollector]

Liquidation Protection Feature

Liquidation protection is a feature offered by OKEx that helps traders avoid forced liquidation. This feature allows traders to set their own liquidation price to protect their positions from being liquidated if the market moves against them. Liquidation protection is available for both spot and margin trading.

How Does Liquidation Protection Work?

When you enable liquidation protection, OKEx will automatically set your liquidation price at a certain percentage of your margin balance. This means that if the market moves against you and your position reaches the liquidation price, OKEx will automatically close your position. This helps you avoid being liquidated at a lower price than you would have been if you had not enabled liquidation protection.

How to Enable Liquidation Protection

Enabling liquidation protection is easy. All you need to do is go to your OKEx account and click on “Margin Trading”. Then, select the “Liquidation Protection” tab and select the percentage of your margin balance you would like to set as your liquidation price. Once you have selected the percentage, click “Save” and your liquidation protection will be enabled.

Benefits of Liquidation Protection

Liquidation protection is a great way to protect your position from being liquidated in case the market moves against you. It also helps you avoid being liquidated at a lower price than you would have been if you had not enabled liquidation protection. Additionally, it can help you manage your risk more effectively by allowing you to set your own liquidation price.

Conclusion

Liquidation protection is a great feature offered by OKEx that can help traders avoid forced liquidation. It allows traders to set their own liquidation price to protect their positions from being liquidated if the market moves against them. Enabling liquidation protection is easy and can help you manage your risk more effectively.

Video

For a more in-depth look at liquidation protection, check out this video from OKEx: