Defending Your Futures Position on AAX
When trading on the futures market, it is important that you keep your eye on your trade as trends change rapidly. AAX allows you to defend your positions when the trends are not in your favor.
Let's say you have set a position on the futures market on AAX. Market trends affect your position, and you hit 50% negative PnL. What do you do?
There is no need to panic in such a situation when trading on AAX exchange. AAX will send you an email to notify you of your current PnL. These updates are essential for traders to make quick moves since the crypto markets are volatile.
You have different options to go with after you have been notified. The most simple thing to do is to exit the position to cut your loss.
Also, you can place an opposite trade to defend your position. For instance, if you have a long position open, you can go short for half your contracts.
If setting a new position is not an option you prefer, you can edit your existing position. You can add to your position to lower your entry and liquidation price.
Finally, you can also lower your leverage. If you have more funds in your wallet, you can add to your margin and lower your leverage by adjusting it. This will lower your liquidation price, making it less likely to get liquidated.
These methods of defending your position on AAX makes futures trading more flexible and profitable for traders. Futures trading is an exciting way to interact with the crypto market. AAX lets you trade futures with USDT or BTC as collateral with up to 100x leverage. You can purchase contracts on bitcoin (BTC), bitcoin cash (BCH), ethereum (ETH), compound (COMP), and chainlink (LINK).
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