Just saw: Binance futures liquidations totaled about $2.47 million over the past hour, with long positions accounting for 87.4%. The largest liquidation was $ETH ($300,000).
People often ask how to interpret liquidation data, so here's my take.
The amounts are based on the notional value of positions, not the actual money lost. In isolated margin mode, when a position with 10x leverage is liquidated, the loss is roughly equivalent to 10% of its notional value in margin.
Liquidation data can show which side of the futures market is more crowded, but it reflects events that have already happened and can't be used directly to predict market movements.
Learning to read indicators is easy; the hard part is sticking to your plan when the market is at its most exciting.
#ETH
People often ask how to interpret liquidation data, so here's my take.
The amounts are based on the notional value of positions, not the actual money lost. In isolated margin mode, when a position with 10x leverage is liquidated, the loss is roughly equivalent to 10% of its notional value in margin.
Liquidation data can show which side of the futures market is more crowded, but it reflects events that have already happened and can't be used directly to predict market movements.
Learning to read indicators is easy; the hard part is sticking to your plan when the market is at its most exciting.
#ETH