🐋 $ZEC A $646,000 long position was liquidated intraday in perpetual futures.
Large liquidations are usually high-leverage positions unable to withstand volatility.
In isolated margin mode, liquidation only costs you the margin allocated to that position; in cross margin mode, all the margin in your account is used to absorb losses.
A cluster of liquidations suggests leverage is being flushed out here. Some believe volatility may briefly ease afterward, but this isn't a rule.
Don't change your approach because of a single number, and especially don't use borrowed money to test a reading.
Large liquidations are usually high-leverage positions unable to withstand volatility.
In isolated margin mode, liquidation only costs you the margin allocated to that position; in cross margin mode, all the margin in your account is used to absorb losses.
A cluster of liquidations suggests leverage is being flushed out here. Some believe volatility may briefly ease afterward, but this isn't a rule.
Don't change your approach because of a single number, and especially don't use borrowed money to test a reading.