Binance futures liquidations over the past hour totaled about $3.37 million, with long positions accounting for 16%. The largest was $ETH ($986,000).
Guys, how do liquidations happen? Hereโs the short version ๐
The amounts reported are based on the notional value of the positions, not the actual losses. With isolated margin, when a 10x leveraged position is liquidated, the margin lost is roughly one-tenth of its notional value.
Even a large single liquidation may not change the direction of a major coin; it more often indicates that the market was volatile at that moment.
These indicators may not be accurate, but risk management is essential: decide in advance what youโll do if your judgment is wrongโthat matters more than guessing correctly.
#ETH
Guys, how do liquidations happen? Hereโs the short version ๐
The amounts reported are based on the notional value of the positions, not the actual losses. With isolated margin, when a 10x leveraged position is liquidated, the margin lost is roughly one-tenth of its notional value.
Even a large single liquidation may not change the direction of a major coin; it more often indicates that the market was volatile at that moment.
These indicators may not be accurate, but risk management is essential: decide in advance what youโll do if your judgment is wrongโthat matters more than guessing correctly.
#ETH