Binance futures liquidations totaled about $4.31 million over the past hour, with long positions accounting for 88.1%. The most liquidated account was $ETH .
Let’s use these figures to talk about liquidations.
When prices fluctuate sharply, liquidations often happen in clusters: one batch of positions gets liquidated, pushing the price further and triggering the next batch.
The often-mentioned “long squeeze” refers to a price drop triggering liquidations of long positions, whose sell orders put further downward pressure on the price. A “short squeeze” is when a price rise forces short positions to be liquidated, and the resulting buybacks push the price even higher.
Calculating your position size based on your stop-loss distance is much more reliable than trading on gut feeling.
#ETH
Just a few notes—not trading advice.
Let’s use these figures to talk about liquidations.
When prices fluctuate sharply, liquidations often happen in clusters: one batch of positions gets liquidated, pushing the price further and triggering the next batch.
The often-mentioned “long squeeze” refers to a price drop triggering liquidations of long positions, whose sell orders put further downward pressure on the price. A “short squeeze” is when a price rise forces short positions to be liquidated, and the resulting buybacks push the price even higher.
Calculating your position size based on your stop-loss distance is much more reliable than trading on gut feeling.
#ETH
Just a few notes—not trading advice.