$ETH A $1.84 million long position was liquidated during this round of volatility in perpetual futures.
Let’s look at what this figure tells us.
Maintenance margin is the minimum margin required to keep a position from being liquidated. The larger the position’s notional value, the higher the required margin ratio usually is.
Large liquidation amounts often coincide with heightened market emotions. Opening a position impulsively at such times can mean chasing the market at its most volatile point.
Unusually high readings are often accompanied by larger price swings. That’s when you should reduce your position, not make a big bet.
Let’s look at what this figure tells us.
Maintenance margin is the minimum margin required to keep a position from being liquidated. The larger the position’s notional value, the higher the required margin ratio usually is.
Large liquidation amounts often coincide with heightened market emotions. Opening a position impulsively at such times can mean chasing the market at its most volatile point.
Unusually high readings are often accompanied by larger price swings. That’s when you should reduce your position, not make a big bet.