Over the past 4 hours, Binance Futures liquidations totaled approximately $15.79 million. Long positions accounted for 71.2%, and the largest liquidation was $BTC ($5.51 million).
Hey everyone, how do liquidations happen? Here’s the short version 👇
The higher the leverage, the closer the liquidation price is to the entry price. The price doesn’t need to move very far for a position to be liquidated.
The often-mentioned “long squeeze” refers to falling prices triggering liquidations of long positions, with forced selling pushing prices even lower. A “short squeeze,” on the other hand, happens when rising prices trigger liquidations of short positions, and buying to cover pushes prices higher still.
Before trading with leverage, first consider whether you can handle the worst-case scenario, then look at what the signals say.
Crypto assets are volatile, so don’t use too much leverage.
Hey everyone, how do liquidations happen? Here’s the short version 👇
The higher the leverage, the closer the liquidation price is to the entry price. The price doesn’t need to move very far for a position to be liquidated.
The often-mentioned “long squeeze” refers to falling prices triggering liquidations of long positions, with forced selling pushing prices even lower. A “short squeeze,” on the other hand, happens when rising prices trigger liquidations of short positions, and buying to cover pushes prices higher still.
Before trading with leverage, first consider whether you can handle the worst-case scenario, then look at what the signals say.
Crypto assets are volatile, so don’t use too much leverage.