A quick note: In the past hour, Binance futures liquidations totaled approximately $19.46 million. Long positions accounted for 96.2%, and the largest liquidation was $ETH .
People often ask how to interpret liquidation data. This is how I understand it.
The higher the leverage, the closer the liquidation price is to the entry price: the price doesn’t have to move much for a position to be liquidated.
The key to leveraged trading is this: even if you ultimately get the direction right, volatility along the way can still wipe out your position early.
Learning to read indicators is easy. The hard part is sticking to your rules when the market gets extreme.
People often ask how to interpret liquidation data. This is how I understand it.
The higher the leverage, the closer the liquidation price is to the entry price: the price doesn’t have to move much for a position to be liquidated.
The key to leveraged trading is this: even if you ultimately get the direction right, volatility along the way can still wipe out your position early.
Learning to read indicators is easy. The hard part is sticking to your rules when the market gets extreme.