Comprehensive guide to managing risk and protecting your capital in perpetual contract trading
Perpetual contract trading involves significant risks. Understanding and managing these risks is crucial for long-term success.
Price volatility can lead to rapid losses, especially with leverage
Insufficient margin can result in forced position closure
Proper position sizing is the foundation of risk management. Never risk more than you can afford to lose.
Never risk more than 1-2% of your total account balance on a single trade.
Leverage amplifies both profits and losses. Use it wisely to enhance returns while managing risk.
Lower risk, suitable for beginners and volatile markets
Balanced approach for experienced traders
High risk, requires expert knowledge and strict discipline
Your liquidation price depends on your leverage and margin. Higher leverage means closer liquidation prices.
SunPerp implements multiple layers of risk control to protect traders and maintain market stability.
In extreme market conditions, profitable positions may be automatically reduced to cover losses from liquidated positions.
Covers losses when liquidated positions cannot be closed at bankruptcy price, protecting other traders.
Trading may be temporarily halted during extreme price movements to prevent cascading liquidations and allow markets to stabilize.