Bitget futures: Position risk control

Bitget futures: Position risk control explained

Bitget's position risk control mechanism is a crucial protective feature designed to help users manage risk in the highly volatile cryptocurrency market. This system is especially important for limiting potential losses caused by high-leverage trading. Below is an overview of how Bitget's risk control for opening positions works.

Deviation between the mark price and market price

In futures trading, Bitget uses a mark price to assess the value of open positions and avoid unnecessary liquidations triggered by sudden spikes or drops in market price. The mark price is calculated as a weighted average of spot prices from multiple leading exchanges, helping smooth out short-term volatility and reducing the risk exposure caused by abnormal price fluctuations on any single exchange.

This mechanism ensures that position valuations on Bitget better reflect the true market level, avoiding liquidations triggered by short-term price anomalies on a single exchange.

Risk control for high-leverage trading

High leverage is a defining feature of crypto futures, but it also introduces significant risk. Bitget's risk control mechanism helps users safeguard their assets by dynamically adjusting margin requirements and setting risk limits. When the market price fluctuates slightly, Bitget's system will monitor the risk level of users' positions in real-time. It promptly issues alerts or triggers partial liquidation to prevent account balances from falling below the required thresholds.

Users can monitor their position risk status in real-time via the Bitget app and are encouraged to adjust leverage or top-up margin as needed. Bitget also provides an auto-deleveraging (ADL) feature to further reduce risks associated with high leverage.

Risk ratio management

The risk ratio is the key indicator of account health, calculated as: Risk ratio = account balance ÷ (position margin + unrealized PnL) Bitget's risk control system monitors this ratio in real time and dynamically adjusts the user's trading permissions. When the risk ratio falls near or below a certain threshold, the system will trigger warnings, block new position openings, or initiate liquidation to limit further losses.

Suppose a user trades BTCUSDT futures on Bitget with 10x leverage. During extreme market volatility, the mark price and market price deviate significantly. If the user attempts to open a position in an unfavorable direction (for example, going long when the market price is far above the mark price), Bitget's risk control mechanism will block the order to ensure that the user's risk ratio remains below 90%.

Summary

Bitget's position risk control combines fair pricing via mark price, high-leverage safeguards, and risk ratio management, to create a secure and transparent futures trading environment. Whether you're a beginner or a seasoned trader, Bitget's professional tools and real-time monitoring features can help you optimize your trading strategy and control risk effectively.