How My Loss Became Someone Else’s Perfect Entry
The first time I got liquidated, I chalked it up to bad luck. The second time, I blamed myself. But after seeing the price bounce hard right after I was wiped out—over and over—I knew something wasn’t right.
That’s when I discovered cascading liquidations.
In leveraged futures trading, every position has a liquidation price. When price hits that level, the exchange force-closes the position—usually by selling it into the open market. Now here’s the catch: when thousands of traders are positioned around the same levels, one liquidation can trigger the next. A chain reaction begins. Price tanks—not because market sentiment flipped, but because positions are getting flushed out automatically.
And here’s what really changed my perspective: exchanges and big players see this coming. They use heatmaps and data to track where overleveraged traders are stacked. All it takes is a small push—just enough to trigger that first wave—and the rest takes care of itself. As the market dumps from mass liquidations, they buy in quietly, scooping up cheap entries we unknowingly helped create.
I didn’t just lose a trade—I became their liquidity.
In this game, your pain isn’t random. It’s engineered.