With the rapid development of the spot asphalt market recently, many investors have been worried about the liquidation of asphalt. Let’s briefly talk about the problem of liquidation of spot asphalt;

The reasons for liquidation The main reason is that the position is too heavy and the full position operation results in poor risk resistance; if the market direction goes wrong, you cannot stop the loss immediately. Instead, the order will be held inside until the asphalt position is liquidated and the position is forced to be liquidated.

So how to prevent spot asphalt liquidation and losses

First: when placing an order, you should strictly set a stop loss. When the market goes wrong, you should cut the flesh when the market is wrong, and admit defeat.

Second: When the account balance is insufficient, you must immediately reduce your position or add funds to ensure that you have sufficient margin to avoid liquidation.

Third: A good mentality is the key to profit. You must maintain a stable mentality when trading. Only with a good mentality can you be clear-minded and not greedy, and accept when things are good. This is very effective for capital preservation and gain.