$ETH A $1.56 million long position was liquidated during this bout of volatility in perpetual futures.
Whenever I come across news of a liquidation like this, I instinctively check my own leverage. I used to know only that liquidations were scary; later, I learned what they actually mean: when your margin can no longer cover your unrealized losses, the system forcibly closes your position. A liquidated long is sold at market by the system, while a liquidated short is bought back.
Sizing your position based on your stop-loss distance is much more reliable than placing trades by feel.
Whenever I come across news of a liquidation like this, I instinctively check my own leverage. I used to know only that liquidations were scary; later, I learned what they actually mean: when your margin can no longer cover your unrealized losses, the system forcibly closes your position. A liquidated long is sold at market by the system, while a liquidated short is bought back.
Sizing your position based on your stop-loss distance is much more reliable than placing trades by feel.
