Under ten times leverage, if the stock you bought drops by 10%, your position will be liquidated. If you cannot replenish the margin in time, you will be forced to close the position and lose all your money, because the 10% drop has already wiped out all your capital. All the gold has fallen.

Theoretically, under the premise of ten times leverage, when the market is unfavorable, the position will be liquidated as long as it rises or falls by 10%. However, some exchanges will generally close the position when the fluctuation is slightly less than 10%. Customers will be forced to liquidate their positions. In short, when the market is unfavorable, the rise or fall of the market that triggers liquidation is the reciprocal of the margin.

Forced liquidation is also called forced liquidation, also known as being liquidated, liquidated, and liquidated. It refers to the situation where the customer's equity in the investor's margin account becomes negative under certain special conditions. Liquidation means that the loss is greater than the margin in your account. The remaining funds after liquidation by the company are the total funds minus your losses, and there is usually a portion left. It is often used in spot gold and futures transactions.

1. To avoid liquidation, we must control our positions and avoid operating with a full position. As in the example above, if we operate with a full position, when the stock continues to fall, we will have no choice but to wait for the exit. There is no room for redemption. Try to diversify your investments and don't bet on one stock. It is best to invest in 2-3 stocks. We can use the profits and losses of several stocks to make up for each other. When one stock loses money, there are other stocks making profits, which can minimize our losses.

2. Avoid investing in high-risk stocks. Such as ST stocks, stocks whose rise and fall are not controlled by 10%, etc. These stocks can easily cause liquidation. Some investors are addicted to gambling and believe that the greater the risk, the higher the return, and it is worth a try. However, stock investment cannot rely on luck. Once the position is liquidated or the funds are trapped, there is no chance of regret. Therefore, everyone must remember to invest prudently. Only by being careful can you drive for thousands of years.

3. Make a strict plan. In stock market operations, the main market makers will make strict plans before placing a stock, such as when to build a stock position, when to attract funds, when to wash the market, when to ship goods, etc. The same is true for retail investors. Before choosing a stock, you must have a sufficient understanding of the underlying stock. You must know when to buy, when to sell, when to add or reduce positions, so that when risks occur, Only then can we cope with it with ease.