Over the past 4 hours, Binance futures liquidations totaled approximately $7.23 million, with long positions accounting for 45.9%. The top one was $BTC .
Folks, what exactly is a liquidation? Here’s the short version.
The higher the leverage, the closer the liquidation price is to the entry price: the market doesn’t need to move very far for a position to be liquidated.
“Long squeeze” refers to a price drop triggering liquidations of long positions, whose forced sell orders push prices down further. A “short squeeze” is when a price rise forces short positions to be liquidated, and their buybacks push prices up further.
Don’t let a single indicator throw off your original plan, and never use borrowed money to test what a reading means.
Folks, what exactly is a liquidation? Here’s the short version.
The higher the leverage, the closer the liquidation price is to the entry price: the market doesn’t need to move very far for a position to be liquidated.
“Long squeeze” refers to a price drop triggering liquidations of long positions, whose forced sell orders push prices down further. A “short squeeze” is when a price rise forces short positions to be liquidated, and their buybacks push prices up further.
Don’t let a single indicator throw off your original plan, and never use borrowed money to test what a reading means.