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MARGIN CALL DUE TO SPREAD: HOW THE MARKET MAKER TAKES YOU OUT DURING NEWS 📊💥
Important economic data is dropping (CPI or Fed rate). Your stop is set far away, position is insured. Suddenly there's a minute impulse, your stop isn’t hit, but you still get liquidated on a margin call. How does that happen?
• At the moment important news drops, liquidity from the order book completely vanishes — bots shut down. The difference between the best buy and sell price (spread) balloons to gigantic sizes.
• The exchange can liquidate you at the Ask/Bid price, which due to the spread skyrocketed, while on the chart the average price (Mark Price) stayed normal. Never hold positions during major news events.
👇 Open the ETH widget. Have you ever lost money on news whipsaws?
#Spread #Liquidation #Ethereum $ETH
{spot}(ETHUSDT)
#CryptoFREEMEN
MARGIN CALL DUE TO SPREAD: HOW THE MARKET MAKER TAKES YOU OUT DURING NEWS 📊💥
Important economic data is dropping (CPI or Fed rate). Your stop is set far away, position is insured. Suddenly there's a minute impulse, your stop isn’t hit, but you still get liquidated on a margin call. How does that happen?
• At the moment important news drops, liquidity from the order book completely vanishes — bots shut down. The difference between the best buy and sell price (spread) balloons to gigantic sizes.
• The exchange can liquidate you at the Ask/Bid price, which due to the spread skyrocketed, while on the chart the average price (Mark Price) stayed normal. Never hold positions during major news events.
👇 Open the ETH widget. Have you ever lost money on news whipsaws?
#Spread #Liquidation #Ethereum $ETH
#CryptoFREEMEN
Important economic data is dropping (CPI or Fed rate). Your stop is set far away, position is insured. Suddenly there's a minute impulse, your stop isn’t hit, but you still get liquidated on a margin call. How does that happen?
• At the moment important news drops, liquidity from the order book completely vanishes — bots shut down. The difference between the best buy and sell price (spread) balloons to gigantic sizes.
• The exchange can liquidate you at the Ask/Bid price, which due to the spread skyrocketed, while on the chart the average price (Mark Price) stayed normal. Never hold positions during major news events.
👇 Open the ETH widget. Have you ever lost money on news whipsaws?
#Spread #Liquidation #Ethereum $ETH
#CryptoFREEMEN
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Article
How to read an order book on Binance?When you pull up the chart on Binance, there's a window a lot of folks overlook
It's called the order book
That's where the real trading action on cryptos goes down
In this article, I'll teach you how to read it and use it to your advantage
What's the order book?
It's a real-time list of all the buy and sell orders
It shows how much buyers want to scoop up and at what price
And how much sellers are looking to offload and at what price
It's split into two sections
Bids are the buy orders
Asks are the sell orders
How to read an order book on Binance?
When you pull up the chart on Binance, there's a window a lot of folks overlook
It's called the order book
That's where the real trading action on cryptos goes down
In this article, I'll teach you how to read it and use it to your advantage
What's the order book?
It's a real-time list of all the buy and sell orders
It shows how much buyers want to scoop up and at what price
And how much sellers are looking to offload and at what price
It's split into two sections
Bids are the buy orders
Asks are the sell orders
It's called the order book
That's where the real trading action on cryptos goes down
In this article, I'll teach you how to read it and use it to your advantage
What's the order book?
It's a real-time list of all the buy and sell orders
It shows how much buyers want to scoop up and at what price
And how much sellers are looking to offload and at what price
It's split into two sections
Bids are the buy orders
Asks are the sell orders
155
Article
What is Spread in Trading?You must have often noticed two lines on the chart with a gap between them. This gap looks much wider on the 1-minute timeframe. That gap is called the Spread.
Some brokers have a wider spread, while others have a tighter spread. It also depends on the trading pair and volatility (how much the price is moving).
For example, you will usually see a larger spread in $BTC Bitcoin compared to $XAU Gold. The bigger the gap, the more it can eat into your profits (or increase your losses).How Spread Works in Buy & Sell Trades
When you open a Buy trade, it opens at the higher line (Ask price).
When you close the trade, it closes at the lower line (Bid price).
When you open a Sell trade, it opens at the lower line (Bid price).
When you close the trade, it closes at the higher line (Ask price).
That's why when you open a small 0.1 lot trade in Bitcoin, you instantly see a loss of around -$5 right after opening. The same happens in Gold, but the loss is smaller because the spread is usually tighter there.
Why Does This Happen?
The spread is the broker's fee (or the difference between the buy and sell price). It is built into every trade you make. In highly volatile assets like crypto, the spread tends to be wider, especially during news events or low liquidity times.
Tip: Always check the spread of your trading pair before entering a trade — especially if you are scalping on lower timeframes like 1-minute charts. A wide spread can turn a potentially winning trade into a losing one very quickly.
#GOLD #bitcoin #spread #TradingTopics
What is Spread in Trading?
You must have often noticed two lines on the chart with a gap between them. This gap looks much wider on the 1-minute timeframe. That gap is called the Spread.
Some brokers have a wider spread, while others have a tighter spread. It also depends on the trading pair and volatility (how much the price is moving).
For example, you will usually see a larger spread in $BTC Bitcoin compared to $XAU Gold. The bigger the gap, the more it can eat into your profits (or increase your losses).How Spread Works in Buy & Sell Trades
When you open a Buy trade, it opens at the higher line (Ask price).
When you close the trade, it closes at the lower line (Bid price).
When you open a Sell trade, it opens at the lower line (Bid price).
When you close the trade, it closes at the higher line (Ask price).
That's why when you open a small 0.1 lot trade in Bitcoin, you instantly see a loss of around -$5 right after opening. The same happens in Gold, but the loss is smaller because the spread is usually tighter there.
Why Does This Happen?
The spread is the broker's fee (or the difference between the buy and sell price). It is built into every trade you make. In highly volatile assets like crypto, the spread tends to be wider, especially during news events or low liquidity times.
Tip: Always check the spread of your trading pair before entering a trade — especially if you are scalping on lower timeframes like 1-minute charts. A wide spread can turn a potentially winning trade into a losing one very quickly.
#GOLD #bitcoin #spread #TradingTopics
Some brokers have a wider spread, while others have a tighter spread. It also depends on the trading pair and volatility (how much the price is moving).
For example, you will usually see a larger spread in $BTC Bitcoin compared to $XAU Gold. The bigger the gap, the more it can eat into your profits (or increase your losses).How Spread Works in Buy & Sell Trades
When you open a Buy trade, it opens at the higher line (Ask price).
When you close the trade, it closes at the lower line (Bid price).
When you open a Sell trade, it opens at the lower line (Bid price).
When you close the trade, it closes at the higher line (Ask price).
That's why when you open a small 0.1 lot trade in Bitcoin, you instantly see a loss of around -$5 right after opening. The same happens in Gold, but the loss is smaller because the spread is usually tighter there.
Why Does This Happen?
The spread is the broker's fee (or the difference between the buy and sell price). It is built into every trade you make. In highly volatile assets like crypto, the spread tends to be wider, especially during news events or low liquidity times.
Tip: Always check the spread of your trading pair before entering a trade — especially if you are scalping on lower timeframes like 1-minute charts. A wide spread can turn a potentially winning trade into a losing one very quickly.
#GOLD #bitcoin #spread #TradingTopics
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