$ETH

How My Loss Became Someone Else’s Ideal Entry Point

The first time I got liquidated, I chalked it up to bad luck. The second time, I blamed myself. But when I kept seeing price surge right after I got wiped out—again and again—I knew something deeper was going on. That’s when I discovered the mechanics behind cascading liquidations.

In leveraged futures trading, every position has a liquidation level. When the price hits it, the exchange forcibly closes that position—usually by selling it into the market. Here’s the catch: when many traders are positioned around similar price levels, one liquidation can spark a chain reaction. Each forced exit triggers the next, sending prices plunging—not due to real sentiment shifts, but because the market is mechanically unwinding over-leveraged trades.

Big players and exchanges understand this dynamic well. They have access to liquidation heatmaps that reveal where most traders are vulnerable. A slight push toward these zones can spark a wave of forced selling, creating a dip that smart money is ready to buy.

So it wasn’t just a failed trade—I unknowingly became someone else's ideal entry.

In this game, your liquidation is their opportunity.

Your loss is their liquidity.

#BinanceTurns8 #stoploss #liquidated