Order Flow Getting Started Tutorial
Large-amount entrusted orders (main orders)
Liquidation Heatmap
Liquidation Map
Basic introduction to order flow
What is order flow?
Order Flow Getting Started Tutorial
Order flow
What is the long-short position accounts ratio?
Manual of contract data for newer
Risk management in contract trading
Commonly used indicators for contract data
Costs in cryptocurrency trading
What positive or negative funding rates means?
Arbitrage opportunities in the cryptocurrency market
What are terms mark price、last price and estimated liquidation price?
What determined funding rate?
Basis and premium
Liquidation and delivery
What are USDT contract and USD contract?
What difference between open interest and trading volume?
Differences between cryptocurrency perpetual contract trading and leverage trading
How to keep balance for price in perpetual contracts and spot?
What categories of cryptocurrency derivatives?
What are Golden Cross and Death Cross, and how are they used in trading?
What is liquidity
What is VWAP indicator and how to use it in cryptocurrency trading?
What is the RSI indicator, how to see overbought and oversold?
How to Read Order Book Data?
The Analysis and Trading Applications of Long-Short Position Ratio and Open Interest
The Significance and Application of Cryptocurrency Liquidation Data
How is funding rate calculated for cryptocurrency perpetual contracts?
How to interpret the open interest data of cryptocurrency contracts?
What is the purpose of the cryptocurrency funding rate?
What is Top trader account long/short ratio
What is exchange top trader positions long/short ratio
What is Bitcoin open interest?
What is perpetual contract funding rate?
What is BTC liquidation or what is cryptocurrency liquidation?

The Significance and Application of Cryptocurrency Liquidation Data

Liquidation data in the context of cryptocurrency refers to the cases in which positions are forcefully closed by the system due to insufficient margin from traders. When a trader's losses exceed the margin provided, the system triggers a liquidation process, forcefully closing their position to protect the exchange and other traders from further losses.

Liquidation data can provide the following information:

  1. Market risk assessment: Liquidation data reflects the risk tolerance and trading behavior of market participants. High frequency of liquidations may indicate high market volatility and increased risk, requiring careful evaluation and risk management.
  2. Support/Resistance levels: During liquidations, the market price often experiences certain levels of support or resistance. When there are more liquidations from long positions, it may create resistance for the market price, while more liquidations from short positions may provide support.
  3. Market sentiment: Liquidation data also reflects the sentiment and expectations of market participants. Large-scale liquidations can trigger market panic and potentially influence market trends as more investors take similar actions.

It is important to note that liquidation data is just one indicator in market analysis and should be considered alongside other indicators and factors. Additionally, liquidation rules and the availability of liquidation data may vary depending on the exchange and contract. Therefore, when using liquidation data, it is recommended to carefully read the rules and explanations provided by the relevant exchange to ensure proper understanding and utilization of this data.

Information content does not constitute investment advice, investors should make independent decisions and bear their own risks