📚 On-Chain Class ⑦ | CPI Shock Night: Calculate Your “Liquidation Price” in 3 Minutes
Last night, U.S. September CPI rose 3.7% year over year, exceeding expectations and reigniting rate-hike fears. The crypto market saw a brutal wipeout of long positions: according to CoinGlass, around $900 million in positions were liquidated across the market in the past 24 hours, affecting more than 170,000 traders, with long positions accounting for over 90% of the total. Today, let’s skip the market outlook and go over a formula to check your positions.
1. The math behind liquidation
Liquidation price ≈ entry price × (1 − 1/leverage). At 10x leverage, a move of about 9% in the opposite direction can liquidate you; at 5x, about 18%. Spot positions at 1x can never be liquidated. The closer the maintenance margin ratio gets to 100%, the closer you are to forced liquidation.
2. Find your liquidation price in 3 steps
1️⃣ Open your futures positions page and find “Liquidation Price”—the platform has already calculated it for you;
2️⃣ Subtract the current price from it, then divide by the current price to see how much price movement you can withstand;
3️⃣ Compare it with tonight’s market: $BTC fell over 3% in 24 hours, $ETH dropped nearly 6%, and BNB and Solana also fell over 3%—highly leveraged positions simply can’t withstand moves of this magnitude.
3. Three ways to stay in the game
✅ Lower your leverage: beginners should avoid anything above 10x;
✅ Set a stop-loss: keep losses within what you can afford;
✅ Use isolated margin: don’t let one trade wipe out your entire account.
Last night’s $900 million was tuition paid by others. Which of these strategies will you use to protect your positions? Share in the comments 👇
#合约入门 #爆仓 #TradingTutorial
⚠️ Personal opinions only. DYOR and manage your risk.
Last night, U.S. September CPI rose 3.7% year over year, exceeding expectations and reigniting rate-hike fears. The crypto market saw a brutal wipeout of long positions: according to CoinGlass, around $900 million in positions were liquidated across the market in the past 24 hours, affecting more than 170,000 traders, with long positions accounting for over 90% of the total. Today, let’s skip the market outlook and go over a formula to check your positions.
1. The math behind liquidation
Liquidation price ≈ entry price × (1 − 1/leverage). At 10x leverage, a move of about 9% in the opposite direction can liquidate you; at 5x, about 18%. Spot positions at 1x can never be liquidated. The closer the maintenance margin ratio gets to 100%, the closer you are to forced liquidation.
2. Find your liquidation price in 3 steps
1️⃣ Open your futures positions page and find “Liquidation Price”—the platform has already calculated it for you;
2️⃣ Subtract the current price from it, then divide by the current price to see how much price movement you can withstand;
3️⃣ Compare it with tonight’s market: $BTC fell over 3% in 24 hours, $ETH dropped nearly 6%, and BNB and Solana also fell over 3%—highly leveraged positions simply can’t withstand moves of this magnitude.
3. Three ways to stay in the game
✅ Lower your leverage: beginners should avoid anything above 10x;
✅ Set a stop-loss: keep losses within what you can afford;
✅ Use isolated margin: don’t let one trade wipe out your entire account.
Last night’s $900 million was tuition paid by others. Which of these strategies will you use to protect your positions? Share in the comments 👇
#合约入门 #爆仓 #TradingTutorial
⚠️ Personal opinions only. DYOR and manage your risk.