In the past hour, Binance futures liquidations totaled approximately $5.04 million. Long positions accounted for 55.5%, the largest being $PUMP ($944,000).
Everyone, how do liquidations happen? Here’s the short version 👇
When a long position is liquidated, the system sells in the market to close it; when a short position is liquidated, the system buys back to close it.
When you see a large liquidation, rather than guessing whether prices will rise or fall next, first check how far your own position is from its liquidation price.
The same data can mean very different things in different market conditions, so don’t blindly apply a rule of thumb.
Stay calm and manage your position size.
Everyone, how do liquidations happen? Here’s the short version 👇
When a long position is liquidated, the system sells in the market to close it; when a short position is liquidated, the system buys back to close it.
When you see a large liquidation, rather than guessing whether prices will rise or fall next, first check how far your own position is from its liquidation price.
The same data can mean very different things in different market conditions, so don’t blindly apply a rule of thumb.
Stay calm and manage your position size.