AI Summary
This video explains how to avoid liquidation in crypto futures trading by using Binance's Hedge Mode, which allows holding both long and short positions on the same coin simultaneously. The presenter demonstrates step-by-step how to enable Hedge Mode and execute a dual-position strategy to manage risk and potentially profit from both upward and downward price movements.
Chapters
Many traders get liquidated because they can only hold one position per coin in One-Way Mode, leading to large losses if the market moves against them.
Select Cross Mode in Binance Futures to use the entire wallet balance as margin, reducing liquidation risk compared to Isolated Mode.
Hedge Mode allows holding both long and short positions on the same coin, enabling traders to hedge against adverse price movements.
Go to Preferences > Position Mode and switch from One-Way Mode to Hedge Mode. This setting allows dual positions.
Open a short position first, then open a long position when the price moves against the short. Both positions remain open simultaneously.
With Hedge Mode, the liquidation price moves further away (e.g., from $5,655 to $8,700), providing more safety.
Close the profitable position at a peak, then wait for the price to reverse and close the other position in profit, securing gains from both sides.
Hedge Mode on Binance Futures allows traders to hold both long and short positions on the same coin, reducing liquidation risk and enabling profit from both market directions. This strategy is used by experienced traders to protect their accounts and achieve consistent gains.
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85% Legit"Title accurately promises a method to avoid liquidation, and the video delivers a clear tutorial on Hedge Mode."
Mentioned in this Video
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Study Flashcards (6)
What is the main benefit of Hedge Mode on Binance Futures?
easy
Click to reveal answer
What is the main benefit of Hedge Mode on Binance Futures?
It allows holding both long and short positions on the same coin simultaneously, reducing liquidation risk.
04:18
How do you enable Hedge Mode on Binance Futures?
easy
Click to reveal answer
How do you enable Hedge Mode on Binance Futures?
Go to Preferences > Position Mode and switch from One-Way Mode to Hedge Mode.
03:53
What happens to the liquidation price when using Hedge Mode with dual positions?
medium
Click to reveal answer
What happens to the liquidation price when using Hedge Mode with dual positions?
The liquidation price moves further away, providing more safety (e.g., from $5,655 to $8,700).
05:50
What is the difference between One-Way Mode and Hedge Mode?
easy
Click to reveal answer
What is the difference between One-Way Mode and Hedge Mode?
One-Way Mode allows only one position per coin (long or short), while Hedge Mode allows both long and short positions simultaneously.
04:05
What should you do after opening a short position if the price starts moving up?
medium
Click to reveal answer
What should you do after opening a short position if the price starts moving up?
Open a long position on the same coin to hedge against the loss.
05:24
How can you profit from both directions using Hedge Mode?
hard
Click to reveal answer
How can you profit from both directions using Hedge Mode?
Close the profitable position at a peak, then wait for the price to reverse and close the other position in profit.
06:29
💡 Key Takeaways
Hedge Mode Concept
Introduces the core strategy of holding dual positions to avoid liquidation.
02:19Enabling Hedge Mode
Provides exact steps to activate the feature, a key technical detail.
04:18Liquidation Price Improvement
Shows quantitative benefit of Hedge Mode with specific price change.
05:50Dual Profit Strategy
Explains how to profit from both upward and downward moves sequentially.
06:17Full Transcript
[00:02] In today's video, I am going to tell you how you can avoid getting liquidated. Many people may have been liquidated many times. In this video I am going to tell you guys about Haze Mood. You must have noticed that often
[00:15] people go long and short the same coin. What happens is that if one of their trades goes into loss, the other one is making profit and In this video I will explain to you guys completely how you
[00:28] n't liked the video, please like it. Let's now, what do you guys want to do first? Open the Binance exchange. After opening, you have to come to the futures. When you click on Futures, from
[00:41] which you want to trade. As of now I have selected this coin. But here I do not have any balance at this time. So here I add my balance. I
[00:55] add about $100 here. From here I started adding $100 from the spot wallet into the futures. Now if you see here, the available balance I have is $100. I added $100. Right now in the video, what I will
[01:08] mode. So you guys have to select cross mode. I have cross mode selected right now. After that you have to place a trade on any coin in any direction, long or short. So according to me the price of Ethereum coin will go down from here. So
[01:21] Whatever the trade amount will be, you can set it according to your needs. Like I'm starting to take a $15 trade here. From here I shorted Ethereum coin according to my analysis, the price of Ethereum coin will come down from here. Now
[01:35] position on Ethereum has been opened. Now if the price of Ethereum coin goes down then I will start making profit. Liquidation is also being seen here. close at a loss. I will lose whatever I have. As you can see at this time
[01:51] lot of people. As I am now shorted Ethereum. Many goes up then what will we do in that case? What will you do in that scenario? Because the less capital. Liquidation is near and more leverage is used.
[02:06] Due to which liquidation is near. Immediately you incur a 50% loss. 30% goes into loss. 80% go into loss. So I started telling them how to save liquidation. And if you understand this method, as you
[02:19] trade is stuck. Going into loss. Now I can go long from here. If the price goes up further then I will get profit from long also. From the same Ethereum as I had shorted, I was incurring loss within the short. So now here
[02:32] From here I go long. I go long for about $10 because now I think the price of Ethereum coin will go up from here. I click on Buy Long. trade will be closed. Why did the short trade close automatically?
[02:46] As soon as we placed the long trade, the short one was automatically closed. Whatever profit or loss was going on has been closed. The reason is that at this time, our trading setup is such that we can either go long or
[03:00] short a single coin. Both positions cannot be placed on the same coin. One-sided trades can be placed. Hopefully you people must have understood. But from here on out I'm starting to As seen in front of you all right now, we tried to take a long trade over the short one.
[03:13] closed and now our long one is running. But I am starting to close this trade. Now the settings that I have started telling you, see how much loss is being incurred in the trades, but my job is to explain it to you so that you get
[03:26] benefits. Now I will tell you how you can go long and short on the same coin and I will show you both the positions and tell you all the settings. Now you have to copy the video from here. Right now
[03:39] setting that you are seeing here is this icon. Simply you have to click here. When you click here, this kind of interface will appear in front of you. Here you have to click on Preferences.
[03:53] When you click here, you have to do the setting and it is not difficult to do the setting. Here you can see the position mode. You have to click on the position mode. Now here you can see one way mode. One way mode means
[04:05] that you have to either go long or short on a single coin. You cannot hold both positions at a time. Now what you see here is the mode. Hatch mode means that you can go long as well as short on the same coin.
[04:18] Meaning you can take two positions. So this Haze Mode that you are seeing, if your one way mode is selected then you have to click on Haze Mode. My currently selected mode on this is one way mode. Because of this, two of my positions are not opening.
[04:30] mode button, we will click here. When we click here, our Haze mode will open. Our setting will be complete. Now we will go back from here. After going back, we will take the trade again and I will show you both long and short
[04:43] live trades and will tell you what personally feel that Ethereum coin should be shorted from here. So from here I started shorting Ethereum. You can see the price. The approximate margin I will
[04:57] use is $15. So from here I shorted Ethereum above the market price. A short position has been opened in front of you people. You can also see the margin and the liquidation price here is $5655. Now if the
[05:11] we will make profit. But in this case, if the price of Ethereum coin goes up, then we will start incurring losses in this trade. And according to me, if the price of Ethereum coin goes up then I should take profit from here also. So how can I
[05:24] feel that I may face loss in the short trade. From here the price may go up a bit. So what should I do? From here I will take a long trade of $10. So from here I make a margin of $10. If I click on Open Long,
[05:37] my long position will be opened. Now look here, currently our position is running, one is long and one is short. but profit is seen in the long one. If
[05:50] see the liquidation here? What are you seeing ? $8700 and when we took just one trade of the theme, what was the liquidation price during that time, you guys can look back a little in the video and it was above $5600, which means the liquidation has also gone away and
[06:05] now if the price goes up here then we will also get profit and then the price has to come down as well, I will give you guys an example that what will be the benefit to you guys from hedge mood ? What will be the profit from long short position? So that you people can
[06:17] understand it well. For example, from here we entered a short trade and from here we entered a long trade when our short trade was making a slight loss. Now from here the price goes up in this manner. After going up, a
[06:29] time will come when the price will peak and the price will again have to face rejection. So here we have to close the long trade. When we close the long trade here come down again. When the price comes down, our loss in the short trade will also
[06:42] reduce. Or we will cut that loss into a little loss Otherwise we will wait and see if the price goes down and we will get profit from there also. What will happen this way? At the end of the day you will get profit. Your
[06:55] wallet will remain properly secure. Due to long shot, your liquidation will also be profit. Even if it goes down, you will still make a go in just one direction. It will go up and it will also come down. So
[07:09] what will happen during that time is that you will benefit from a long shot. Now as you can see, there is loss in the short one and profit in the long one. Now close the long one. When the price comes down, I will close the short one also
[07:21] in profit. In this way you will get profit from double side and will be absolutely safe and secure. Many wealthy people also use it because it eliminates liquidity. The account is saved from being liquidated. Rest, I have
[07:33] not given any financial device to anyone in this video. You have to tell in the comment how you liked the video and if you See you in the next and amazing video. Till then
[07:48] in the next and amazing video. Till then Allah Hafiz.