Editing Risk management (section)

== Key Risk Management Strategies ==
Here are some proven strategies to manage risks in crypto futures trading:

=== 1. Set Stop-Loss Orders ===
A stop-loss order automatically closes your position when the price reaches a predetermined level. This helps limit losses and is a cornerstone of [[crypto futures trading strategies]].

=== 2. Use Proper Position Sizing ===
Never risk more than 1-2% of your trading capital on a single trade. This ensures that no single loss can significantly impact your overall portfolio.

=== 3. Diversify Your Portfolio ===
Avoid putting all your funds into one cryptocurrency. Diversification reduces the impact of a poor-performing asset.

=== 4. Understand Leverage ===
While [[crypto futures leverage trading]] can boost profits, it also increases risks. Use leverage cautiously and only when you fully understand its implications.

=== 5. Stay Informed ===
Keep up with [[crypto futures market trends]], [[crypto futures regulations 2023]], and global economic factors that may affect the market.