Common Trading Risks
Risks of Spot Trading
Section titled “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
Section titled “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
Section titled “Main causes”- Aggressive settings (low coverage percentage, entry without filters).
- Poorly chosen trading pair.
How to reduce the risk
Section titled “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:
Risks in Leveraged Futures
Section titled “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
Section titled “When liquidation happens”- Price moves against the position, and the loss exceeds available balance.
- There aren’t enough funds in the account to maintain margin.
How to avoid it
Section titled “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.