Binance futures liquidations totaled about $2.55 million over the past hour. Long positions accounted for 13.3% ($338,000 long / $2.21 million short). The largest liquidation was $TIA ($881,000).
Folks, how should you read liquidation stats? Here’s the short version👇
A liquidation (also called a forced liquidation) happens when losses on a leveraged position reduce its margin below the maintenance margin requirement, and the system automatically closes the position.
A large liquidation amount doesn’t necessarily affect the direction of major coins; it mostly indicates that the market was moving quickly at the time.
Sizing your orders based on your stop-loss distance is much more reliable than just guessing.
This is just an opinion; trade at your own risk.
Folks, how should you read liquidation stats? Here’s the short version👇
A liquidation (also called a forced liquidation) happens when losses on a leveraged position reduce its margin below the maintenance margin requirement, and the system automatically closes the position.
A large liquidation amount doesn’t necessarily affect the direction of major coins; it mostly indicates that the market was moving quickly at the time.
Sizing your orders based on your stop-loss distance is much more reliable than just guessing.
This is just an opinion; trade at your own risk.