Data snapshot: $2 million in Binance futures liquidations over the past hour | Longs accounted for 80.7% | $Q ranked first
Definition: The amounts reported are calculated based on the notional value of positions, not the actual money lost. In isolated-margin mode, if a position with 10x leverage is liquidated, the loss is mainly the margin, which is around one-tenth of the notional value.
How to read this: When liquidation amounts are high, market sentiment is usually running hot too. Rushing to open a position at such times can mean buying into the most extreme point of a price swing.
Unusually high readings are often accompanied by more volatile price swings. At times like these, it’s better to reduce position sizes rather than make a big bet.
Definition: The amounts reported are calculated based on the notional value of positions, not the actual money lost. In isolated-margin mode, if a position with 10x leverage is liquidated, the loss is mainly the margin, which is around one-tenth of the notional value.
How to read this: When liquidation amounts are high, market sentiment is usually running hot too. Rushing to open a position at such times can mean buying into the most extreme point of a price swing.
Unusually high readings are often accompanied by more volatile price swings. At times like these, it’s better to reduce position sizes rather than make a big bet.