$13.38 million in Binance futures liquidations over the past 4 hours | Longs accounted for 87.6% | $ETH ranked first
Before discussing capital flows, let's first understand liquidation.
Liquidation (also called a forced liquidation) occurs when losses on a leveraged position reduce its margin below the maintenance margin requirement, causing the system to forcibly close the position according to its rules.
When liquidations happen across the board, rather than guessing where the market will go next, it's better to first check how far your position is from its liquidation price.
Extreme data usually signals greater volatility. At times like these, it's wiser to reduce leverage rather than make a large bet.