A quick note: Over the past 4 hours, Binance Futures liquidations totaled approximately $7.56 million. Long positions accounted for 54.6% ($4.12 million long / $3.43 million short). The largest was $ETH ($2.52 million).
People often ask how to interpret liquidation data. This is how I understand it.
The amounts here are calculated based on the notional value of positions; they don’t equal the actual money lost. In isolated margin mode, if a position with 10x leverage is liquidated, the loss is roughly equivalent to the margin—about 10% of the notional value.
Don’t use more leverage to try to recover losses; that’s often how a string of liquidations begins.
Don’t let any single figure throw off your original plan, and don’t gamble with borrowed money on a particular prediction.
People often ask how to interpret liquidation data. This is how I understand it.
The amounts here are calculated based on the notional value of positions; they don’t equal the actual money lost. In isolated margin mode, if a position with 10x leverage is liquidated, the loss is roughly equivalent to the margin—about 10% of the notional value.
Don’t use more leverage to try to recover losses; that’s often how a string of liquidations begins.
Don’t let any single figure throw off your original plan, and don’t gamble with borrowed money on a particular prediction.