Binance futures liquidations totaled about $3.92 million over the past hour, with long positions accounting for 25.4%. The largest liquidation was $BTC ($1.5 million).
Let's use this figure to break down how liquidations work.
The amounts reported are based on the notional value of positions, not actual losses: with isolated margin, when a position using 10x leverage is liquidated, the loss is mainly around 10% of its notional value in margin.
The key to leveraged trading is this: even if you end up being right about the direction, a sudden wick along the way can liquidate your position first.
Don't let a single indicator throw off your original plan, and never gamble borrowed money on a reading.
How you trade is up to you; this is just a record.
Let's use this figure to break down how liquidations work.
The amounts reported are based on the notional value of positions, not actual losses: with isolated margin, when a position using 10x leverage is liquidated, the loss is mainly around 10% of its notional value in margin.
The key to leveraged trading is this: even if you end up being right about the direction, a sudden wick along the way can liquidate your position first.
Don't let a single indicator throw off your original plan, and never gamble borrowed money on a reading.
How you trade is up to you; this is just a record.