Most losses in your first week aren't bad luck. They're patterns — the same handful of mistakes that almost every new perp trader runs into. This guide covers the seven most common ones on LeverUp, and exactly how to avoid them.

What This Guide Covers

  • Leverage mistakes that lead to fast liquidations
  • Stop loss errors that leave you unprotected
  • Collateral and margin misunderstandings specific to LeverUp
  • Habits that catch traders off guard on multi-day holds

Before You Start

This guide assumes you've already read:

Mistake 1: Maxing Out Leverage Right Away

What happens: A new trader opens their first position at 50x or 100x because the option is there.

Why it goes wrong: At 100x leverage, the market only needs to move 0.85% against your position to wipe 85% of your collateral. With no stop loss and no experience reading market structure, that threshold gets hit faster than expected.

How to avoid it: Start with 5x–10x leverage until you understand how your liquidation price moves relative to entry. Once you've opened and closed several positions and understand the math, scale up intentionally — not by default.

Mistake 2: Opening a Position With No Stop Loss

What happens: The trader opens a trade, watches it for a while, then steps away. The market moves against them while they're offline.

Why it goes wrong: LeverUp has no margin call and no warning system. When your position crosses the liquidation threshold, it closes automatically — no notification, no second chance. Without a stop loss, you're fully exposed the moment you close your browser.

How to avoid it: Set a stop loss before you step away from any position. The How to Set Stop Loss & Take Profit guide walks through the exact steps.

Mistake 3: Setting a Stop Loss Below the Liquidation Price

What happens: The trader sets a stop loss but places it too low — below the liquidation price.

Why it goes wrong: If your stop loss triggers at a price where liquidation already happened, the SL is useless. The position liquidates first, and the stop loss never executes. You lose all your margin instead of exiting at a controlled loss.

How to avoid it: Always check your liquidation price in the order summary panel before confirming. Your stop loss must be set above the liquidation price (for longs) or below it (for shorts). The order form shows both — compare them before you confirm.

Mistake 4: Assuming Collateral Value Is Fixed

What happens: A trader deposits MON as collateral for a 10x long, checks back the next day, and finds their position is closer to liquidation than expected — even though BTC barely moved.

Why it goes wrong: When you use AnyCollateral (non-stablecoin assets like MON), your collateral's USD value fluctuates with the asset's own price. If MON drops 15% overnight, the effective USD value of your collateral drops with it — shrinking your margin and moving your liquidation price closer.

You're now carrying two risk exposures: the position direction and your collateral's own volatility.

How to avoid it: This is covered in more detail in How to Use AnyCollateral, but the short version: if you use volatile collateral, use lower leverage than you normally would. Stacking a 20x position on top of MON collateral during a volatile market means two things can move against you at once.

Mistake 5: Walking Away From a High-Leverage Position

What happens: A trader opens a 50x position before bed "just to see what happens."

Why it goes wrong: At high leverage, liquidation thresholds are narrow. A 2% overnight move in either direction can close the position entirely. LeverUp doesn't send alerts — if you're not watching, you find out after the fact.

How to avoid it: If you can't monitor a position, it needs a stop loss and appropriate leverage before you step away. High-leverage positions aren't suitable for set-and-forget trading.

Mistake 6: Forgetting That Funding Rates Are Ongoing

What happens: A trader opens a long position, pays a small funding fee, holds for several days, and is surprised when their margin erodes more than expected.

Why it goes wrong: Funding rates are charged continuously (typically every 8 hours) for as long as you hold the position. On a multi-day hold during a period of high funding, these costs compound and gradually move your liquidation price closer to entry — even if the market price hasn't moved against you.

How to avoid it: Before entering a multi-day hold, check the current funding rate on the market ticker. If it's running against your position direction, factor it into your exit plan. The How Liquidation Works on LeverUp article covers how fee accumulation affects liquidation price over time.

Mistake 7: Not Reading the Order Summary Before Confirming

What happens: A trader clicks through the order form quickly and confirms without reviewing the summary panel.

Why it goes wrong: The order summary shows your exact collateral, position size, leverage, entry price, and liquidation price — all in one place before you commit. Skipping it means you might be entering with different values than you intended (wrong leverage, wrong size, wrong collateral).

How to avoid it: Treat the order summary as a required step, not a formality. Read through it every time, especially the liquidation price and total collateral at risk.

Quick Reference

Mistake Core fix
Max leverage on first trade Start at 5x–10x; scale up intentionally
No stop loss Always set SL before stepping away
SL below liquidation price SL must be above liq price (long) or below (short)
Ignoring collateral volatility Use lower leverage with non-stablecoin collateral
Unmonitored high-leverage hold No high leverage without a stop loss
Overlooking funding costs Check funding rate before multi-day holds
Skipping order summary Review every field before confirming