🐋 Beyond reading the charts, you should understand this too: the insurance fund and ADL
When ADL occurs, the system selects profitable positions in the opposite direction according to their ranking and closes part of them at the bankruptcy price of the liquidated position.
A large part of Binance’s insurance fund comes from liquidation fees and profits from closing bankrupt positions. It builds up during calm markets and is used to cover losses when markets are highly volatile.
Coin in the example: $BTC . Current price: 82229.36 (24h +0.85%).
After taking a loss, don’t rush to double down to try to win it back—you’ll often end up losing even more.
DYOR, and only trade within your means.
When ADL occurs, the system selects profitable positions in the opposite direction according to their ranking and closes part of them at the bankruptcy price of the liquidated position.
A large part of Binance’s insurance fund comes from liquidation fees and profits from closing bankrupt positions. It builds up during calm markets and is used to cover losses when markets are highly volatile.
Coin in the example: $BTC . Current price: 82229.36 (24h +0.85%).
After taking a loss, don’t rush to double down to try to win it back—you’ll often end up losing even more.
DYOR, and only trade within your means.