Trader 'The Gambler' recently experienced a partial liquidation of high-leverage short positions on Bitcoin and Ethereum, suffering losses of up to 17.11 million USD.
Trading with 40x leverage for Bitcoin and 25x for Ethereum has caused 'The Gambler' significant losses, highlighting the great risks when trading cryptocurrency with high leverage.
MAIN CONTENT
Trader 'The Gambler' partially liquidated short positions on Bitcoin and Ethereum.
The leverage used is very high, at 40x for Bitcoin and 25x for Ethereum.
The total loss reached 17.11 million USD according to Onchain Lens data.
Who is Trader 'The Gambler' and what is their role in the cryptocurrency market?
Trader 'The Gambler' is a well-known trader with a high-leverage trading style, resulting in significant volatility in their asset portfolio. According to Onchain Lens statistics, they have had short positions on Bitcoin and Ethereum with leverage levels of 40x and 25x, respectively.
Using high leverage demonstrates experience and risk-taking in trading, but it also means a higher risk of liquidation if the market moves against expectations.
Why are high-leverage short positions easily liquidated?
High leverage narrows the trader's safety margin. When Bitcoin or Ethereum prices fluctuate slightly, the account can easily lose part or all of the margin, leading to liquidation.
The case of 'The Gambler' clearly demonstrates this as price fluctuations triggered partial liquidations of short positions, resulting in losses of up to 17.11 million USD on the trade.
'Using high leverage requires strict risk management; otherwise, it can lead to significant losses like in the recent case of 'The Gambler.'
Nguyen Thanh Tung, cryptocurrency market analyst, 2024.
What is the impact of liquidation on the cryptocurrency market and traders?
Such large liquidations not only directly affect the individual trader but can also impact market sentiment, causing strong price fluctuations in the short term.
This is particularly important in the context of a highly volatile and risky cryptocurrency market, necessitating careful consideration by investors before placing high-leverage orders.
How to minimize risks when trading leveraged cryptocurrency?
According to experts, effective risk mitigation involves proper capital management, using stop loss, and not over-leveraging.
Traders also need to enhance market monitoring, be prepared with contingency plans to protect their portfolios against volatility.
Characteristics Short Position Bitcoin Short Position Ethereum Leverage Used 40x 25x Total Loss 17.11 million USD (cumulative) Data Source Onchain Lens (2024)
Frequently Asked Questions
1. Why is high leverage in cryptocurrency trading risky?
High leverage increases profit potential but also makes you susceptible to liquidation with small market movements.
2. What does liquidation mean in cryptocurrency trading?
Liquidation is the automatic closing of a trader's position when the account lacks sufficient margin to maintain the trade due to losses.
3. How to avoid being liquidated on leveraged positions in cryptocurrency?
Using leverage wisely, setting stop loss orders, and carefully managing capital helps minimize liquidation risks.
4. What are the differences in popular leverage levels between Bitcoin and Ethereum?
Bitcoin is usually traded with higher leverage than Ethereum due to greater liquidity and trading volume.
5. Who currently provides reliable liquidation data in cryptocurrency?
Many on-chain analytics platforms, such as Onchain Lens, provide verified and detailed data on liquidation activities in the market.
Source: https://tintucbitcoin.com/trader-qwatio-thua-lo-tren-10-trieu/
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