$ZEC A $1.03 million long position was liquidated during this bout of volatility in perpetual contracts.
Whenever I see a liquidation alert like this, I instinctively check my own positions. At first, I only knew that liquidations were scary. Gradually, I learned what they actually mean: a liquidation happens when your margin can no longer cover your unrealized losses, so the system automatically closes your position. When a long position is liquidated, the system sells at market price; when a short position is liquidated, the system buys to close it.
Calculating your position size based on your stop-loss distance is much more reliable than placing orders based on gut feeling.
Whenever I see a liquidation alert like this, I instinctively check my own positions. At first, I only knew that liquidations were scary. Gradually, I learned what they actually mean: a liquidation happens when your margin can no longer cover your unrealized losses, so the system automatically closes your position. When a long position is liquidated, the system sells at market price; when a short position is liquidated, the system buys to close it.
Calculating your position size based on your stop-loss distance is much more reliable than placing orders based on gut feeling.