Binance futures liquidations totaled about $11.04 million in the past hour, with long positions accounting for 96.3% ($10.63 million in longs / $412,000 in shorts). The largest was $ETH ($4.94 million).
Let’s use this figure to break down liquidations.
A long liquidation is when a leveraged position betting on prices rising is forcibly closed, usually when prices fall. Short liquidations are the opposite and tend to happen when prices rise.
Reducing leverage, keeping more margin, and setting stop-losses in advance are the most common ways to avoid liquidation.
When trading with leverage, first figure out whether you can withstand the worst-case scenario, then look at what the indicators are saying.
#ETH
Let’s use this figure to break down liquidations.
A long liquidation is when a leveraged position betting on prices rising is forcibly closed, usually when prices fall. Short liquidations are the opposite and tend to happen when prices rise.
Reducing leverage, keeping more margin, and setting stop-losses in advance are the most common ways to avoid liquidation.
When trading with leverage, first figure out whether you can withstand the worst-case scenario, then look at what the indicators are saying.
#ETH
