Those who got liquidated in the early hours probably didn’t get the direction wrong—they just took on too much leverage.
#Ethereum liquidations totaled $356 million. Behind every liquidation is an account that couldn’t take the pressure.
Three leverage rules to keep from getting rekt:
1. Work out your liquidation price first, then decide how much leverage to use—not the other way around.
2. Set your maximum loss on any single trade at a small fraction of your total funds. If it exceeds that, don’t take the trade.
3. Don’t rush to add to your position to average down during big swings. The more you add, the more trapped you become.
$ETH Before opening a futures position, do you set a stop-loss first, or think about how much you could make?
#Ethereum liquidations totaled $356 million. Behind every liquidation is an account that couldn’t take the pressure.
Three leverage rules to keep from getting rekt:
1. Work out your liquidation price first, then decide how much leverage to use—not the other way around.
2. Set your maximum loss on any single trade at a small fraction of your total funds. If it exceeds that, don’t take the trade.
3. Don’t rush to add to your position to average down during big swings. The more you add, the more trapped you become.
$ETH Before opening a futures position, do you set a stop-loss first, or think about how much you could make?