$BTW During this bout of volatility in perpetual contracts, a short position worth $667,000 was liquidated.
Let’s use that figure to talk about liquidations.
In isolated margin mode, you can lose at most the margin allocated to that position. In cross margin mode, all the margin in your account can be used to cover the loss.
Liquidation data can show which side of the derivatives market is more crowded, but it reflects events that have already happened and shouldn’t be used on its own to predict market direction.
Understanding this metric can help you avoid being misled by the numbers—not help you pinpoint tops and bottoms.
Let’s use that figure to talk about liquidations.
In isolated margin mode, you can lose at most the margin allocated to that position. In cross margin mode, all the margin in your account can be used to cover the loss.
Liquidation data can show which side of the derivatives market is more crowded, but it reflects events that have already happened and shouldn’t be used on its own to predict market direction.
Understanding this metric can help you avoid being misled by the numbers—not help you pinpoint tops and bottoms.
