$ETH A $1.95 million long position was liquidated during trading in perpetual futures.
Whenever I come across news of a large liquidation, I first check my own leverage. I used to know only that getting liquidated was scary; over time, I came to understand that liquidation depends not just on whether you got the direction right, but also on how high your leverage is and whether you have enough margin. A sudden sharp move can sweep through the market, and if your margin isn’t sufficient, you can be forced out.
Liquidation data can show which side of the contract market is more crowded, but it’s a record of what has already happened and can’t be used on its own to predict market movements.
All data summarizes market activity that has already happened; the market can move in the opposite direction at any time.
#ETH
Whenever I come across news of a large liquidation, I first check my own leverage. I used to know only that getting liquidated was scary; over time, I came to understand that liquidation depends not just on whether you got the direction right, but also on how high your leverage is and whether you have enough margin. A sudden sharp move can sweep through the market, and if your margin isn’t sufficient, you can be forced out.
Liquidation data can show which side of the contract market is more crowded, but it’s a record of what has already happened and can’t be used on its own to predict market movements.
All data summarizes market activity that has already happened; the market can move in the opposite direction at any time.
#ETH
