Could a 4.6% intraday move wipe out a 20x long? Let’s use $HYPE, ranked fourth on today’s Square trending list, to walk beginners through the numbers.
On OKX, the current price is around 79.3, with a 24h range of 76.07–79.61—near the daily high. The funding rate is about +0.009%, and open interest is around $100 million, so things aren’t overheated.
Simplified calculation (isolated margin, excluding fees and maintenance margin):
・10x: about a 10% move against you would wipe out your margin; the liquidation price would be roughly around 71–72
・20x: about a 5% move against you; the liquidation price would be roughly around 75, just a little below today’s low of 76.07
In other words, with normal volatility like today’s, entering a 20x position near the daily high could get you liquidated first—even if you got the direction right. The actual liquidation price shown by the exchange is the one to rely on; maintenance margin brings it closer.
Risk to watch: when a trending coin is near its daily high, the most common mistake isn’t getting the direction wrong—it’s using too much leverage and setting your stop-loss beyond the liquidation price.
What leverage would you use for $HYPE? 🟢Below 5x / 🔴10x or more
#Crypto #HYPE #FuturesForBeginners #Liquidation #BinanceSquare
For more resources, see the BIO on my profile.
Not investment advice. Investing involves risk.
On OKX, the current price is around 79.3, with a 24h range of 76.07–79.61—near the daily high. The funding rate is about +0.009%, and open interest is around $100 million, so things aren’t overheated.
Simplified calculation (isolated margin, excluding fees and maintenance margin):
・10x: about a 10% move against you would wipe out your margin; the liquidation price would be roughly around 71–72
・20x: about a 5% move against you; the liquidation price would be roughly around 75, just a little below today’s low of 76.07
In other words, with normal volatility like today’s, entering a 20x position near the daily high could get you liquidated first—even if you got the direction right. The actual liquidation price shown by the exchange is the one to rely on; maintenance margin brings it closer.
Risk to watch: when a trending coin is near its daily high, the most common mistake isn’t getting the direction wrong—it’s using too much leverage and setting your stop-loss beyond the liquidation price.
What leverage would you use for $HYPE? 🟢Below 5x / 🔴10x or more
#Crypto #HYPE #FuturesForBeginners #Liquidation #BinanceSquare
For more resources, see the BIO on my profile.
Not investment advice. Investing involves risk.