$ETH A $7.03 million long position was liquidated in the perpetual futures market during the day, with the price near 2433.32.
Whenever I see a report of a large liquidation, I instinctively check my own leverage. I used to know only that liquidations were scary; later, I finally understood: a liquidation happens when your margin can no longer cover your unrealized losses, and the system forcibly closes your position. A liquidated long is effectively sold at market price by the system; a liquidated short is effectively bought back to close.
A large single liquidation may not change the trend for a major coin; it mainly shows that the market was moving quickly at the time.
Before using leverage, first consider whether you could handle the worst-case outcome, then see what the signals say.
#ETH
I’m just chatting off the cuff—don’t take this as investment advice.
Whenever I see a report of a large liquidation, I instinctively check my own leverage. I used to know only that liquidations were scary; later, I finally understood: a liquidation happens when your margin can no longer cover your unrealized losses, and the system forcibly closes your position. A liquidated long is effectively sold at market price by the system; a liquidated short is effectively bought back to close.
A large single liquidation may not change the trend for a major coin; it mainly shows that the market was moving quickly at the time.
Before using leverage, first consider whether you could handle the worst-case outcome, then see what the signals say.
#ETH
I’m just chatting off the cuff—don’t take this as investment advice.