Market Notes｜$ETH ｜$7.43 million in short liquidations
Definition: Liquidation (commonly called getting “rekt”) refers to the system automatically closing a leveraged position when losses reduce its margin below the maintenance margin requirement.
In other words: The risk of leveraged trading is that even if your prediction eventually proves correct, a price wick along the way could liquidate your position first.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule.
Definition: Liquidation (commonly called getting “rekt”) refers to the system automatically closing a leveraged position when losses reduce its margin below the maintenance margin requirement.
In other words: The risk of leveraged trading is that even if your prediction eventually proves correct, a price wick along the way could liquidate your position first.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule.