In the past 10 minutes, trader AguilaTrades has opened a short position of 26,000 ETH with 15x leverage.
This position is valued at up to 111 million USD, with an opening price of 4,219 USD and a liquidation threshold set at 4,435 USD.
MAIN CONTENT
AguilaTrades opened a short position of 26,000 ETH within 10 minutes.
The leverage used is 15x, corresponding to a position valued at 111 million USD.
Opening price 4,219 USD, liquidation price 4,435 USD.
What are the notable characteristics of AguilaTrades' ETH short position?
AguilaTrades has just opened a short position of 26,000 ETH with 15x leverage, with a total position value of up to 111 million USD.
This position is set at an opening price of 4,219 USD per ETH, with a liquidation price of 4,435 USD, indicating quite high risk if the ETH price rises sharply. Using high leverage reflects a high-risk investment strategy but also high expected returns.
How does 15x leverage in ETH trading affect risk?
15x leverage amplifies potential profits but also increases the risk of liquidation if the market moves against.
With a position of 26,000 ETH, any small price fluctuation exceeding the threshold of 4,435 USD could lead to liquidation of the position, causing significant capital loss for the investor. This is a strategy for experienced traders with good risk management skills.
High leverage comes with high risk, only professional traders should exploit this strategy.
Cryptocurrency trader, 2024
How to effectively manage risk in large leveraged short positions?
Effective risk management requires investors to set appropriate stop-loss orders and closely monitor market fluctuations to avoid significant losses.
Additionally, understanding the liquidation point and the volatility level of ETH helps traders decide when to enter and exit trades wisely, minimizing the risk of account liquidation due to price fluctuations exceeding thresholds.
Frequently Asked Questions
What does an ETH short position mean?
An ETH short position means the trader bets that the price of ETH will decrease, profiting from this decline.
How does 15x leverage affect trading?
15x leverage increases profits or losses by 15 times compared to the initial investment, both risk and opportunity are higher.
What is the liquidation price and why is it important?
The liquidation price is the price at which the position is automatically closed to avoid significant losses, helping to manage risk for the investor.
How to limit risk when opening a short position using leverage?
Set stop-loss orders, continuously monitor the market, and only use leverage that is appropriate for financial capacity and experience.
What impact does a position valued at 111 million USD have on the market?
A large position can exert pressure on the price, contributing to increased volatility in the short term.
Source: https://tintucbitcoin.com/ethereum-bi-ban-khong-26-000-eth/
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