Binance futures saw about $26.64 million in liquidations over the past hour, with long positions accounting for 97.8% ($26.05 million long / $590,000 short). The largest liquidation was $ETH ($12.66 million).
Let’s use this figure to break down liquidations.
A liquidation (also called getting “rekt”) happens when losses on a leveraged position reduce its margin below the maintenance margin requirement, causing the system to close the position according to its rules.
The risk of leveraged trading is that even if you end up being right about the direction, a sudden wick along the way could liquidate your position first.
Sizing your order based on the distance to your stop-loss is far more reliable than guessing your position size.
Let’s use this figure to break down liquidations.
A liquidation (also called getting “rekt”) happens when losses on a leveraged position reduce its margin below the maintenance margin requirement, causing the system to close the position according to its rules.
The risk of leveraged trading is that even if you end up being right about the direction, a sudden wick along the way could liquidate your position first.
Sizing your order based on the distance to your stop-loss is far more reliable than guessing your position size.
