Binance futures liquidations totaled $12.98 million over the past 4 hours | Long positions accounted for 83.8% | $BTC ranked first
Before discussing capital flows, let’s first understand liquidations.
When prices surge or plunge, liquidations often happen in clusters: the first batch of positions gets liquidated, pushing prices further and triggering the next batch.
Using less leverage, keeping more margin on hand, and setting stop-losses in advance are some of the most common ways to reduce the risk of liquidation.
The point of understanding an indicator is to avoid being spooked by a single number—not to use it to predict market tops or bottoms.
Before discussing capital flows, let’s first understand liquidations.
When prices surge or plunge, liquidations often happen in clusters: the first batch of positions gets liquidated, pushing prices further and triggering the next batch.
Using less leverage, keeping more margin on hand, and setting stop-losses in advance are some of the most common ways to reduce the risk of liquidation.
The point of understanding an indicator is to avoid being spooked by a single number—not to use it to predict market tops or bottoms.