Just saw: A $1.95 million long position in the $ETH perpetual contract was liquidated during this bout of volatility.
People often ask what liquidation means, so here’s my take.
Liquidation (also called getting “rekt”) happens when unrealized losses on a leveraged position cause the margin to fall below the maintenance margin requirement, and the system closes the position according to its rules.
Don’t use more leverage to try to make back your losses. This often leads to a string of liquidations.
The same data can mean very different things in different market conditions, so don’t blindly apply a single experience to every situation.
#ETH
Personal notes. Make your own decisions when buying or selling.
People often ask what liquidation means, so here’s my take.
Liquidation (also called getting “rekt”) happens when unrealized losses on a leveraged position cause the margin to fall below the maintenance margin requirement, and the system closes the position according to its rules.
Don’t use more leverage to try to make back your losses. This often leads to a string of liquidations.
The same data can mean very different things in different market conditions, so don’t blindly apply a single experience to every situation.
#ETH
Personal notes. Make your own decisions when buying or selling.
