Over the past 4 hours, $8.42 million in Binance futures positions were liquidated｜Long positions accounted for 18.9%｜$ETH ranked first
Before looking at position size, first understand liquidation.
Liquidation (also called a forced liquidation) happens when unrealized losses on a leveraged position reduce its margin below the maintenance margin requirement, causing the system to automatically close the position.
Don’t use more leverage to try to recover losses—this often marks the start of a series of liquidations.
Sizing your position based on your stop-loss distance is much more reliable than going by gut feeling.
Be aware of the risks and make your own decisions.
Before looking at position size, first understand liquidation.
Liquidation (also called a forced liquidation) happens when unrealized losses on a leveraged position reduce its margin below the maintenance margin requirement, causing the system to automatically close the position.
Don’t use more leverage to try to recover losses—this often marks the start of a series of liquidations.
Sizing your position based on your stop-loss distance is much more reliable than going by gut feeling.
Be aware of the risks and make your own decisions.