Binance futures liquidations totaled approximately $12.33 million over the past 4 hours. Long positions accounted for 38.3%, and the largest liquidation was $AGT .
Let’s use this data to talk about liquidations.
The amounts reported are based on the notional value of positions, not actual losses. With isolated margin, if a position using 10x leverage is liquidated, the loss is roughly equivalent to one-tenth of its notional value in margin.
When liquidation amounts are high, market sentiment is usually extreme too. Placing trades impulsively in these conditions can easily mean entering at the most volatile point.
The same data can mean very different things in different market conditions, so don’t apply a single rule mechanically.
Let’s use this data to talk about liquidations.
The amounts reported are based on the notional value of positions, not actual losses. With isolated margin, if a position using 10x leverage is liquidated, the loss is roughly equivalent to one-tenth of its notional value in margin.
When liquidation amounts are high, market sentiment is usually extreme too. Placing trades impulsively in these conditions can easily mean entering at the most volatile point.
The same data can mean very different things in different market conditions, so don’t apply a single rule mechanically.