đ $BTC During this bout of volatility in perpetual contracts, a $4.87 million long position was liquidated.
Large liquidations are usually a sign that leveraged positions couldnât withstand the volatility.
Maintenance margin is the minimum margin required to keep a position from being liquidated. The larger the positionâs notional value, the higher the required margin ratio generally is.
The key to leveraged trading is recognizing that even if you ultimately get the direction right, volatility along the way could liquidate your position first.
Keep extra margin in your futures positions so a sudden move doesnât wipe you out.
Large liquidations are usually a sign that leveraged positions couldnât withstand the volatility.
Maintenance margin is the minimum margin required to keep a position from being liquidated. The larger the positionâs notional value, the higher the required margin ratio generally is.
The key to leveraged trading is recognizing that even if you ultimately get the direction right, volatility along the way could liquidate your position first.
Keep extra margin in your futures positions so a sudden move doesnât wipe you out.