Spot Margin Trading: How to Control Risk and Safeguard Your Funds

Spot margin trading allows users to magnify their trading funds by borrowing, but it also incurs liabilities in the user's margin account, increasing the risk. In the event that the user's margin account becomes insolvent, liquidation or partial liquidation may occur. How to avoid risks in margin trading and make trading safer?

Monitoring and controlling your risk ratio is crucial. The risk ratio is calculated as the ratio of debt to assets. When the risk ratio is greater than or equal to 1, the system will sell the assets in the user's margin account to repay the loan until the risk ratio is less than or equal to 50%.

You can also use TP/SL to control risk when you have open positions and cannot monitor the market all the time.

Take profit (TP) refers to an operation where users close their positions when the spot price rises/falls to a certain value to convert unrealized profits into realized profits. Stop loss (SL) refers to an operation where users close their positions when the spot price rises/falls to a certain value to prevent further losses.

Bitget spot margin trading offers a TP/SL order mode, where you can simply fill in the TP/SL trigger price and trading volume.

Understand how to control risk and establish a risk control system to help you make more stable spot margin trades and earn profits securely.