Just saw this: Binance futures liquidations totaled about $19.46 million over the past hour, with long positions accounting for 96.2%. The largest was $ETH ($8.56 million).
People often ask what liquidation means. Here’s how I understand it.
When a long position is liquidated, the system sells in the market to close it; when a short position is liquidated, the system buys to close it.
Large liquidations mean leverage on that side has been flushed out. Some people think volatility may ease briefly afterward, but that’s not a rule.
Don’t chase a trade during the most volatile moment. Wait for the candlestick to close before taking another look.
#ETH
People often ask what liquidation means. Here’s how I understand it.
When a long position is liquidated, the system sells in the market to close it; when a short position is liquidated, the system buys to close it.
Large liquidations mean leverage on that side has been flushed out. Some people think volatility may ease briefly afterward, but that’s not a rule.
Don’t chase a trade during the most volatile moment. Wait for the candlestick to close before taking another look.
#ETH