Binance futures liquidations totaled $7.32 million in the past 4 hours｜Longs accounted for 48%｜$BTC ranked first
Before looking at positions, understand liquidations.
When a long position is liquidated, the system sells in the market to close it; when a short position is liquidated, the system buys to close it.
A cluster of liquidations means leverage on that side has been flushed out. Some believe volatility may briefly calm after the flush, but this is not a rule.
Unusually high readings typically signal larger swings. At times like these, it’s better to reduce positions rather than add to them.
Before looking at positions, understand liquidations.
When a long position is liquidated, the system sells in the market to close it; when a short position is liquidated, the system buys to close it.
A cluster of liquidations means leverage on that side has been flushed out. Some believe volatility may briefly calm after the flush, but this is not a rule.
Unusually high readings typically signal larger swings. At times like these, it’s better to reduce positions rather than add to them.