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Never get liquidated(idea)

Binance

Cryptocoins Exchanges / Binance 181 Views

So randomly at 2 am I got a thought how to minimize the risk of getting liquidated.

Please tell me what I am missing...

Probably would need a bot for this but the idea is the following. Lets say your coin of choice trades at 1.3 with margin and have 1000 coins.

Let's assume the liquidation price would be at 1. So you bot will automatically short the same amount (here 1000) at 1.03 lets say to prevent liquidation(positions cancel eachother out) and close the short when you are lets say at 1.05. This way you have no fear of liquidation and if you believe the coin will eventually go up enable you to trade futures/margin on it without worry.

submitted by /u/xEternex
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