$BTC A $3.03 million long position in a perpetual futures contract was liquidated intraday.
Hey everyone, what exactly is a liquidation? Here’s the quick version 👇
A long liquidation happens when a leveraged long position is forcibly closed, usually when prices fall. A short liquidation is the opposite and usually happens during a rally.
The often-mentioned term “long squeeze” refers to falling prices triggering long liquidations, with the resulting sell orders pushing prices even lower. A “short squeeze” happens when rising prices force short liquidations, and short covering pushes prices even higher.
Sizing positions based on your stop-loss distance is much more reliable than just guessing.
#BTC
Hey everyone, what exactly is a liquidation? Here’s the quick version 👇
A long liquidation happens when a leveraged long position is forcibly closed, usually when prices fall. A short liquidation is the opposite and usually happens during a rally.
The often-mentioned term “long squeeze” refers to falling prices triggering long liquidations, with the resulting sell orders pushing prices even lower. A “short squeeze” happens when rising prices force short liquidations, and short covering pushes prices even higher.
Sizing positions based on your stop-loss distance is much more reliable than just guessing.
#BTC