🚨 🔥 DEAR INVESTORS, UNDERSTAND LIQUIDATIONS 🫨🚨🥵⚠️

When a trader's positions are closed as a result of price changes and the balance of their margin account is insufficient to cover the open positions, this is known as a liquidation event. Most exchanges have a liquidation level, or the price at which leveraged trades will be forcibly stopped in order to prevent further losses for both traders and exchanges.

Similar to understanding high liquidity in the order book, traders who can assess the liquidation levels of other traders can benefit. To help traders identify ideal liquidity positions, Coinglass's liquidation heat map strives to predict possible critical points for large liquidations.

Based on market data and different amounts of leverage, the liquidation heat map determines the liquidation levels. The prices on the chart are then updated with the determined levels. #IsraelIranConflict #PowellRemarks #FOMCMeeting #Liquidations $ETH $BTC