$DOGE ｜$738,000 in long liquidations
Before discussing capital, let’s first understand liquidation.
Maintenance margin is the minimum margin required to keep a position from being liquidated. The larger the position, the higher the required margin ratio usually is.
“Longs liquidating longs” refers to a price drop triggering liquidations of long positions, with the resulting sell orders pushing prices down further. A “short squeeze,” by contrast, occurs when rising prices trigger short liquidations, and covering those positions pushes prices even higher.
Extreme readings often come with greater volatility. In such conditions, it’s even more important to reduce leverage rather than make a large bet.
Before discussing capital, let’s first understand liquidation.
Maintenance margin is the minimum margin required to keep a position from being liquidated. The larger the position, the higher the required margin ratio usually is.
“Longs liquidating longs” refers to a price drop triggering liquidations of long positions, with the resulting sell orders pushing prices down further. A “short squeeze,” by contrast, occurs when rising prices trigger short liquidations, and covering those positions pushes prices even higher.
Extreme readings often come with greater volatility. In such conditions, it’s even more important to reduce leverage rather than make a large bet.