A quick note: Binance futures liquidations totaled about $9.14 million in the past hour. Longs accounted for 25.3%, and the largest liquidation was $BTC ($4.04 million).
People often ask what liquidation data means. Here’s how I understand it.
A forced liquidation (also called a liquidation) occurs when unrealized losses on a leveraged position cause the margin to fall below the maintenance margin requirement, prompting the system to automatically close the position.
Don’t use more leverage to try to recover losses—this often marks the start of a chain of liquidations.
Indicators can be inaccurate, but don’t skip your stop-loss: deciding in advance what to do if you’re wrong is more important than guessing correctly.
People often ask what liquidation data means. Here’s how I understand it.
A forced liquidation (also called a liquidation) occurs when unrealized losses on a leveraged position cause the margin to fall below the maintenance margin requirement, prompting the system to automatically close the position.
Don’t use more leverage to try to recover losses—this often marks the start of a chain of liquidations.
Indicators can be inaccurate, but don’t skip your stop-loss: deciding in advance what to do if you’re wrong is more important than guessing correctly.
