In the past hour, about $7.32 million in Binance futures positions were liquidated. Long positions accounted for 2.9%, and the largest was $ETH .
Let’s break down the liquidation data.
These amounts are based on the notional value of the positions, not actual losses. With isolated margin, a liquidated position at 10x leverage would lose roughly the margin, which is about 10% of its notional value.
Liquidation data can show which side of the market has more crowded leveraged positions, but it’s retrospective data and can’t be used directly to predict market direction.
Learning to read indicators is easy; the hard part is sticking to your plan when emotions are at their most extreme.
Let’s break down the liquidation data.
These amounts are based on the notional value of the positions, not actual losses. With isolated margin, a liquidated position at 10x leverage would lose roughly the margin, which is about 10% of its notional value.
Liquidation data can show which side of the market has more crowded leveraged positions, but it’s retrospective data and can’t be used directly to predict market direction.
Learning to read indicators is easy; the hard part is sticking to your plan when emotions are at their most extreme.
