Liquidation of $ 10 billion worth of futures traders in the recent decline
The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles
Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles
Answer Liquidation of $ 10 billion worth of futures traders in the recent decline
The crypto market has experienced a sharp decline in the last 24 hours.
Which contributed to the increase in liquidation operations, which amounted to nearly $ 10 billion this morning, as the cryptocurrency market witnessed a deep decline, as data from the platform shows. “bybt”.
According to the same source, more than a million individual accounts have been liquidated.
Bulk Filters:
“Liquidation” occurs when traders borrow from trading platforms (i.e. “margin” or futures trading) to place larger bets on the assets they are trading, while paying them a fixed fee for doing so.
Trading platforms close traders’ positions at a predetermined price when the trader’s collateral is equal to the loss on the position he chooses. This process is called liquidation.
Read:South Korea is slowly approaching the launch of its central bank digital currency “CBDC”
Amid all the euphoria from last week, such as statements by bank executives that bitcoin will overvalue gold and assets hit new heights at all, traders have likely borrowed more than their books allow and contributed to what has become an over-leveraged market.
Saturday night she was holding the pin that will blow this balloon.
Markets fell about 10% on average, some altcoins even saw 25% losses, while traders ended up losing $9.85 billion.
Of that, $8.68 billion worth of liquidations occurred in long positions, or from traders betting on higher prices.
Binance saw $4.6 billion worth of futures liquidated, Huobi $1.59 billion, and Bybit $1 billion.
– red (redxbt) April 18 2021
Futures traders take a hard hit:
Bitcoin alone saw liquidations worth $5.6 billion, followed by Ethereum with $1.1 billion and XRP with $462 million.
The largest single liquidation order on Binance occurred on the Bitcoin/Tether trading pair with a value of $68.73 million.
In conclusion, we warn against financial leverage, because its damages may be severe.
Read:NEO Project reveals some financial details of the project
The massive liquidation that took place today will also alert new market entrants that the crypto market does not always rise, but is occasionally punctuated by dips and corrections.
Read also:
An unconfirmed tweet storms the crypto market and makes it fall by more than 290 billion dollars
Why did bitcoin and the crypto market as a whole fall so violently?
And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time