Market Notes｜$ZEC ｜Long Liquidation: $1.03 Million
First, a definition: maintenance margin is the minimum margin required to keep a position from being liquidated. The larger the position, the higher the required margin ratio generally is.
How to read it: When liquidation amounts are very large, market sentiment is often just as extreme. At such times, impulsive orders can easily chase the market at the most volatile point.
Sizing positions based on stop-loss distance is much more reliable than placing orders based on gut feeling.
First, a definition: maintenance margin is the minimum margin required to keep a position from being liquidated. The larger the position, the higher the required margin ratio generally is.
How to read it: When liquidation amounts are very large, market sentiment is often just as extreme. At such times, impulsive orders can easily chase the market at the most volatile point.
Sizing positions based on stop-loss distance is much more reliable than placing orders based on gut feeling.
