Technical Note | $12.72 million in Binance futures liquidations over the past 4 hours | Long positions accounted for 13.7% | $BTC ranked first
First, a definition: Maintenance margin is the minimum margin required to keep a position from being liquidated. The larger the position’s notional value, the higher the required margin ratio generally is.
Next, how to read it: Large liquidations mean leverage on that side has been cleared out. Some people believe the market may calm down temporarily afterward, but this is not a rule.
Knowing how to read indicators isn’t hard; the hard part is sticking to your rules when the market gets heated.
First, a definition: Maintenance margin is the minimum margin required to keep a position from being liquidated. The larger the position’s notional value, the higher the required margin ratio generally is.
Next, how to read it: Large liquidations mean leverage on that side has been cleared out. Some people believe the market may calm down temporarily afterward, but this is not a rule.
Knowing how to read indicators isn’t hard; the hard part is sticking to your rules when the market gets heated.