Crypto Futures Liquidations: What’s Going On?
The crypto market is never boring, is it? Just this past hour, the market saw a staggering $167 million in crypto futures liquidations. That’s a lot of money disappearing into thin air, leaving traders scrambling to understand the implications. So what does it mean for those trading, and how are regulators across Asia and Europe reacting?
What Are Crypto Futures Liquidations?
To put it simply, crypto futures liquidations happen when traders are forced to close their leveraged positions after unfavorable price movements. Futures contracts let you speculate on future prices of cryptocurrencies without actually owning them. The catch? Leverage can boost your profits, but it also magnifies your losses.
What’s the process? When a trader’s…
