Every day for the last 30, $NEAR moved more than the 5% that wipes out a 20x position.
Rough rule: at 20x, a move of about 5% against you takes the margin. At 10x, about 10%. Maintenance margin makes the real distance a bit shorter.
Daily high-to-low range as a % of the open, last 30 full days on Binance spot:
- NEAR: average 10.9%. 30 of 30 days moved 5% or more, 14 days moved 10% or more. Biggest day: 24.3%.
- $SOL averaged 4.1%. 5 days moved 5% or more, none moved 10%. Biggest day: 9.5%.
A day's range isn't all against you, so not every one of those days would have liquidated a 20x. But a single wick is enough.
What I take from it:
1. Check the coin's normal daily range before picking leverage
2. Keep the liquidation price outside a normal day's range
3. On wide-range coins, cut the size, not the stop distance
What leverage would you use on a coin that moves 10.9% on an average day, if any?
Rough rule: at 20x, a move of about 5% against you takes the margin. At 10x, about 10%. Maintenance margin makes the real distance a bit shorter.
Daily high-to-low range as a % of the open, last 30 full days on Binance spot:
- NEAR: average 10.9%. 30 of 30 days moved 5% or more, 14 days moved 10% or more. Biggest day: 24.3%.
- $SOL averaged 4.1%. 5 days moved 5% or more, none moved 10%. Biggest day: 9.5%.
A day's range isn't all against you, so not every one of those days would have liquidated a 20x. But a single wick is enough.
What I take from it:
1. Check the coin's normal daily range before picking leverage
2. Keep the liquidation price outside a normal day's range
3. On wide-range coins, cut the size, not the stop distance
What leverage would you use on a coin that moves 10.9% on an average day, if any?
