Binance futures liquidations in the past 4 hours: $4.03 million | Long positions accounted for 74.1% | $ZEC ranked first
Before looking at capital flows, first understand liquidations.
The liquidation of large numbers of long positions adds extra selling pressure, while a wave of short liquidations brings additional buying. That’s why cascading liquidations amplify volatility.
The risk of leveraged trading is that even if you ultimately get the direction right, volatility along the way may liquidate your position first.
Calculating your position size based on your stop-loss distance is far more reliable than choosing one on a whim.
Before looking at capital flows, first understand liquidations.
The liquidation of large numbers of long positions adds extra selling pressure, while a wave of short liquidations brings additional buying. That’s why cascading liquidations amplify volatility.
The risk of leveraged trading is that even if you ultimately get the direction right, volatility along the way may liquidate your position first.
Calculating your position size based on your stop-loss distance is far more reliable than choosing one on a whim.