$BTC A $2.88 million long position was liquidated on a perpetual contract during the day.
Whenever I see a large liquidation alert, I first check my own leverage. At first, I only knew that getting liquidated was frightening. Over time, I came to understand that liquidation depends not only on whether you got the direction right, but also on how much leverage you use and how much margin you keep. One sudden wick can wipe you out if your margin is too low.
Don’t use more leverage to try to recover your losses; this often marks the beginning of a string of liquidations.
Cross-checking multiple data points is more reliable than looking at just one, but even a wealth of indicators can’t provide certainty.
Whenever I see a large liquidation alert, I first check my own leverage. At first, I only knew that getting liquidated was frightening. Over time, I came to understand that liquidation depends not only on whether you got the direction right, but also on how much leverage you use and how much margin you keep. One sudden wick can wipe you out if your margin is too low.
Don’t use more leverage to try to recover your losses; this often marks the beginning of a string of liquidations.
Cross-checking multiple data points is more reliable than looking at just one, but even a wealth of indicators can’t provide certainty.
