A $6.57 million long position just got wiped out. $BTC Current price: 81,543, down 2.67% over the past 24 hours.
What makes it trickier is that there’s still a huge sell order overhead that hasn’t been pulled, sitting right above the current price. For a rebound to break through, someone has to chew through those orders first.
By the way, whether you use cross or isolated margin has a lot to do with liquidation. With cross margin, all the available balance in your account backs the position, so it’s less likely to be liquidated—but if it is, your whole account could go with it. With isolated margin, you only lose the margin allocated to that position, so the maximum loss is fixed. I always double-check the margin mode before placing a trade.
Do you usually use isolated margin, or do you prefer going all-in with cross margin?
#BitcoinOptionsVolatilityHitsFiveYearLow
Just my personal observations, not investment advice.
What makes it trickier is that there’s still a huge sell order overhead that hasn’t been pulled, sitting right above the current price. For a rebound to break through, someone has to chew through those orders first.
By the way, whether you use cross or isolated margin has a lot to do with liquidation. With cross margin, all the available balance in your account backs the position, so it’s less likely to be liquidated—but if it is, your whole account could go with it. With isolated margin, you only lose the margin allocated to that position, so the maximum loss is fixed. I always double-check the margin mode before placing a trade.
Do you usually use isolated margin, or do you prefer going all-in with cross margin?
#BitcoinOptionsVolatilityHitsFiveYearLow
Just my personal observations, not investment advice.