A quick note: A $983,000 long position in perpetual futures was liquidated intraday at $SOL , with the price around 74.5956.
People often ask how to think about liquidations. This is how I see it.
The higher the leverage, the closer the liquidation price is to the entry price: the price doesn’t need to move much for a position to be liquidated.
“Longs liquidating longs” refers to a drop triggering liquidations of long positions, with the resulting sell orders pushing prices even lower. A “short squeeze” is when a rise triggers liquidations of short positions, and buybacks push prices even higher.
Don’t place orders during the fastest-moving moments. Wait for the price to settle before deciding.
#SOL
Just a casual note—make your own decisions about buying and selling.
People often ask how to think about liquidations. This is how I see it.
The higher the leverage, the closer the liquidation price is to the entry price: the price doesn’t need to move much for a position to be liquidated.
“Longs liquidating longs” refers to a drop triggering liquidations of long positions, with the resulting sell orders pushing prices even lower. A “short squeeze” is when a rise triggers liquidations of short positions, and buybacks push prices even higher.
Don’t place orders during the fastest-moving moments. Wait for the price to settle before deciding.
#SOL
Just a casual note—make your own decisions about buying and selling.
