What happens if my futures position gets liquidated?

Liquidation is a process that occurs when your futures position's value becomes insufficient to cover the required margin. This can happen if the price of the underlying asset moves against your position.

Here's what happens when your futures position gets liquidated:

1. Margin Call: When your position's value starts to decline, you may receive a margin call. This is a warning that you need to add more funds to your account to maintain your position.
2. Liquidation: If you fail to add more funds before the specified deadline, your position will be liquidated. This means your position will be automatically closed by the exchange.
3. Loss of Funds: When your position is liquidated, you will lose the funds you have invested in that position. The amount of loss will depend on how far the price of the underlying asset has moved against your position.

To avoid liquidation:

• Monitor your position closely: Keep an eye on the price of the underlying asset and your position's value.
• Maintain sufficient margin: Ensure you have enough funds in your account to cover any potential losses.

Consider using stop-loss orders: Stop-loss orders can help you automatically close your position if the price reaches a certain level, limiting your potential losses.