$BTC During this round of volatility in perpetual futures, a long position worth $4.08 million was liquidated.
Let’s use this figure to talk about liquidations.
The higher the leverage, the closer the liquidation price is to the entry price: it doesn’t take much of a price move for a position to be liquidated.
When liquidation amounts are large, market sentiment is usually at an extreme too. Rushing to place an order at such times can mean entering at the height of volatility.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
Let’s use this figure to talk about liquidations.
The higher the leverage, the closer the liquidation price is to the entry price: it doesn’t take much of a price move for a position to be liquidated.
When liquidation amounts are large, market sentiment is usually at an extreme too. Rushing to place an order at such times can mean entering at the height of volatility.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.