Binance futures liquidations totaled about $8.42 million over the past 4 hours, with long positions accounting for 18.9%. The largest liquidation was $ETH .
Everyone, how should you read liquidation stats? Here’s the short version:
The higher the leverage, the closer the liquidation price is to the entry price: the market doesn’t have to move much for a position to be liquidated.
A cluster of liquidations means leverage on that side has been flushed out. Some believe the market may briefly calm down afterward, but this is not a rule.
With leveraged positions, first consider whether you can withstand the worst-case scenario, then look at what the signals are saying.
Everyone, how should you read liquidation stats? Here’s the short version:
The higher the leverage, the closer the liquidation price is to the entry price: the market doesn’t have to move much for a position to be liquidated.
A cluster of liquidations means leverage on that side has been flushed out. Some believe the market may briefly calm down afterward, but this is not a rule.
With leveraged positions, first consider whether you can withstand the worst-case scenario, then look at what the signals are saying.
