Over the last four hours, Binance futures holdings worth almost $206 million were liquidated. 98.9% of positions were long, with $BTC ($124 million) at the top of the list.
What leads to liquidations, people? This is the condensed version
Waves of liquidated short positions create
additional buying pressure, while mass liquidations of long positions enhance selling pressure. Because of this, cascading liquidations increase volatility.
Don't try to recover your losses by using greater leverage; this usually signals the beginning of a series of liquidations.
Determining the size of your position based on the location of your stop-loss is far safer than choosing one based only on intuition.
#BTC #tradinginsight
What leads to liquidations, people? This is the condensed version
Waves of liquidated short positions create
additional buying pressure, while mass liquidations of long positions enhance selling pressure. Because of this, cascading liquidations increase volatility.
Don't try to recover your losses by using greater leverage; this usually signals the beginning of a series of liquidations.
Determining the size of your position based on the location of your stop-loss is far safer than choosing one based only on intuition.
#BTC #tradinginsight
