$5.64 million in Binance futures liquidations over the past 4 hours | Long positions account for 40.2% | $ETH ranks first
Before looking at positions, first understand liquidations.
A long position is liquidated when a leveraged bet on rising prices is forcibly closed, usually when prices fall. Short positions are liquidated in the opposite scenario, mostly when prices rise.
Reducing leverage, keeping enough margin, and setting stop-losses in advance are the most common ways to avoid liquidation.
Unusually high readings often come with greater volatility. In such conditions, it’s better to dial back leverage rather than make a big bet.
Before looking at positions, first understand liquidations.
A long position is liquidated when a leveraged bet on rising prices is forcibly closed, usually when prices fall. Short positions are liquidated in the opposite scenario, mostly when prices rise.
Reducing leverage, keeping enough margin, and setting stop-losses in advance are the most common ways to avoid liquidation.
Unusually high readings often come with greater volatility. In such conditions, it’s better to dial back leverage rather than make a big bet.