The cryptocurrency trader liquidated 2,000 ETH during a rapid market downturn, adjusting the liquidation price down by 10 USD.
Mr. Yu Jin, an on-chain analyst, revealed that a 'Roller' still maintains an open position with 23,100 ETH, using leverage of 740,000 USD and currently has an unrealized profit of 2.63 million USD.
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The liquidation of 2,000 ETH caused the liquidation price to drop by 10 USD, from 4,668 USD to 4,658 USD.
The current open position is 23,100 ETH, valued at approximately 108 million USD.
The unrealized profit of this position reaches 2.63 million USD with a margin of 740,000 USD.
How much ETH did the trader liquidate and how did it affect the liquidation price?
According to analysis from on-chain expert Yu Jin, a cryptocurrency trader (Roller) processed the liquidation of 2,000 ETH during a significant market decline, directly impacting the liquidation price.
This action has reduced the liquidation price of the position from 4,668 USD to 4,658 USD, a decrease of 10 USD. This is an important factor indicating the level of volatility in the cryptocurrency market, reflecting strong impacts from large liquidation activities.
What is the current open position of this trader and what is the maximum potential value?
The trader is maintaining an open position with 23,100 ETH, equivalent to a market value of about 108 million USD, based on the current price. The margin required for this position is 740,000 USD, indicating a considerable use of financial leverage.
This indicates the level of commitment and trust in recovery predictions or continuing trends, with an unrealized profit of up to 2.63 million USD, demonstrating effective risk management and investment strategy of this individual.
What does unrealized profit mean in the context of the cryptocurrency market?
The unrealized profit of 2.63 million USD shows that the position remains profitable even in a volatile market. This is a sign that the trader successfully leveraged with a strategic vision, contributing to the reliability of investment decisions.
This profit also reflects experience and deep understanding of the market, along with the ability to manage positions effectively in unfavorable market conditions.
Frequently Asked Questions
What is a Roller in cryptocurrency trading?
A Roller is a trader who uses significant leverage, executing high-volume positions, often related to liquidations and strong volatility.
What is the liquidation price and why is it important?
The liquidation price is the price at which the position will be automatically closed when losses exceed the margin level, important for managing risk in the market.
How to assess unrealized profit in trading?
Unrealized profit indicates the current value of profit when the position has not been closed, reflecting the effectiveness of the strategy and market conditions.
How does leverage affect risk?
Leverage increases the potential for profit but also increases the risk of liquidation and loss if the market moves against predictions.
Why is tracking open positions important in cryptocurrency trading?
An open position shows the amount of assets being held and affects the overall financial status of the investor.
Source: https://tintucbitcoin.com/rolling-brother-thoat-vi-the-2-000-eth/
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