Market Notes | $22.1 million in Binance futures liquidations over the past 4 hours | Long positions accounted for 7.5% | $ETH ranked first
First, a definition: Maintenance margin is the minimum margin required to keep a position from being liquidated. The larger a position’s notional value, the higher the required margin ratio generally is.
A common takeaway: Reducing leverage, keeping sufficient margin, and setting stop-losses in advance are among the most common ways to reduce the risk of liquidation.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
First, a definition: Maintenance margin is the minimum margin required to keep a position from being liquidated. The larger a position’s notional value, the higher the required margin ratio generally is.
A common takeaway: Reducing leverage, keeping sufficient margin, and setting stop-losses in advance are among the most common ways to reduce the risk of liquidation.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.