$PUMP A $842,000 long position was liquidated during this round of volatility in perpetual futures.
Whenever I see a liquidation alert like this, I instinctively check my own positions. At first, I only knew that liquidation was scary. Gradually, I came to understand that liquidation happens when losses on a leveraged position cause its margin to fall below the maintenance margin, prompting the system to forcibly close it. The higher the leverage, the closer the liquidation price is to the entry price.
A large liquidation means leverage on that side is being cleared out. Some believe volatility may temporarily ease after the positions are flushed out, but this is not a rule.
It’s far more reliable to work out your position size based on where you place your stop-loss than to trade on gut feeling.
#PUMP
Whenever I see a liquidation alert like this, I instinctively check my own positions. At first, I only knew that liquidation was scary. Gradually, I came to understand that liquidation happens when losses on a leveraged position cause its margin to fall below the maintenance margin, prompting the system to forcibly close it. The higher the leverage, the closer the liquidation price is to the entry price.
A large liquidation means leverage on that side is being cleared out. Some believe volatility may temporarily ease after the positions are flushed out, but this is not a rule.
It’s far more reliable to work out your position size based on where you place your stop-loss than to trade on gut feeling.
#PUMP