$ETH During this bout of volatility in perpetual contracts, a short position worth $1.22 million was liquidated.
Let’s break that number down.
Liquidation (commonly called getting “rekt”) means that when losses on a leveraged position cause its margin to fall below the maintenance margin requirement, the system automatically closes the position.
When liquidation amounts are large, market sentiment is often at an extreme too. Placing trades impulsively at such times can mean chasing the market at the most extreme point of a swing.
Cross-checking several indicators is more prudent than relying on just one, but even more signals can’t provide a definitive answer.
#ETH
Let’s break that number down.
Liquidation (commonly called getting “rekt”) means that when losses on a leveraged position cause its margin to fall below the maintenance margin requirement, the system automatically closes the position.
When liquidation amounts are large, market sentiment is often at an extreme too. Placing trades impulsively at such times can mean chasing the market at the most extreme point of a swing.
Cross-checking several indicators is more prudent than relying on just one, but even more signals can’t provide a definitive answer.
#ETH