# Common Trading Risks

> Learn the main risks in spot and futures trading, from stuck positions to liquidation, and how to reduce them with proper settings and management.

## Risks of Spot Trading

When trading on spot, a bot may get stuck for a long time in **Invest Mode** — when all grid orders are executed, but the price moves unfavorably and doesn’t reach the profit order.

### Why this happens
- **Long**: the asset drops after being bought at a high price.
- **Short**: the asset rises after being sold at a low price.

### Main causes
1. Aggressive settings (low coverage percentage, entry without filters).
2. Poorly chosen trading pair.

### How to reduce the risk
- Use coins from the **top 25 by market capitalization**.
- Run a backtest before starting.
- Don’t set coverage lower than **30–40%**.
- If needed, reverse the bot’s algorithm so the deposit doesn’t sit idle.

**Related materials:**
- [Filters for starting](https://help.veles.finance/en/filters/general/)
- [How to run backtests](https://help.veles.finance/en/platform/components/backtests/)
- [Short algorithm setup](https://veles.finance/en/blog/post/customizing-bot-short-algorithm)
- [Principles of Long and Short](https://help.veles.finance/en/getting-started/overview/bot/#long-and-short-trading)

## Risks in Leveraged Futures

The main danger is **position liquidation** (margin call), when the exchange forcibly closes the trade if there are not enough funds to maintain it.

### When liquidation happens
1. Price moves against the position, and the loss exceeds available balance.
2. There aren’t enough funds in the account to maintain margin.

### How to avoid it
- Learn the liquidation rules on your exchange.
- Practice on a **demo account**.
- Configure your bot so that the liquidation risk is minimal.
- Always control position size relative to your deposit.

:::tip
Following proper risk management is the best way to preserve your deposit and your peace of mind.
:::