A trader lost over $1 Million + on Binance Future trading

[Hazink]

Reference

“Just woke up and realised I got liquidated overnight. I was 3x long PEPE. I lost everything I had. I don’t even have $1000 in my bank account but had $1M in Binance. I have been in crypto since 2017. Today I lost everything,” he posted.

This is one disadvantage of future trading. You can make a fortune over night trading on future, but you can also lose it all if you don't apply good risk management. It's obvious that this man did not set a stop-loss point; his greed overshadowed him with too much confidence that the bitcoin price can't dump since the halving is just around the corner.

It's hard to experience total liquidation like this on spot trading, but if I thought Binance by default doesn't allow 100% liquidation on future trading, at least it will automatically stop in the range of 85–90% of the trader's total assets they always tries to leave you with something.

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[cryptoWODL]

We all know trading is risky but among them futures trading is the most risky. Many times despite having experience one cannot succeed in this futures trading. This is why futures trading is often compared to gambling. There is more risk in futures trading than there is in gambling. I believe the words you mentioned about futures trading because I have involved myself with futures trading many times for which I have full experience.

I was trading a coin futures that I took two x long. Then a few minutes later I got a message from Binanch and sent a dollar full of consolation to my account. Maybe those who traded futures on the Binance exchange may understand that when they liquidate, they get a dollar back as consolation. When I got liquidated in futures trading, I vowed that I would not be involved in futures trading again because this trading can make people rich overnight and make them lose money overnight.

[BitMaxz]

That is super risky why did he invest in Meme tokens like Pepe it does not have any use and the thing here is he doesn't know how to use a stop-loss.
I see many traders got liquidated recently on the chart and almost billions were liquidated in two waves yesterday.
What I see here he does not have knowledge about risk management which is why he lost everything.

And correction its not feature trading it is futures trading.

[KingsDen]

I do not have an idea on how to trade futures, but with the little research I meant about future trading, I concluded that it is a kind of gambling. And it is only those who are mentally strong and emotionally rugged that goes into features with such amount of capital.

That is super risky why did he invest in Meme tokens like Pepe it does not have any use and the thing here is he doesn't know how to use a stop-loss.

He used a meme coins because I guess it is more volatile and such can give faster profits. Maybe, he didn't use stop loss because his capital was much and as such he didn't think he could be liquidated.

What I see here he does not have knowledge about risk management which is why he lost everything.

It might not only be risk management but over confidence of the trader.

[taufik123]

I do not have an idea on how to trade futures, but with the little research I meant about future trading, I concluded that it is a kind of gambling. And it is only those who are mentally strong and emotionally rugged that goes into features with such amount of capital.

It's like gambling if you look at how the process is, just do a guess and place a bet with 3x, 10x or even 100x leverage.
If the guess is wrong and the price is far from what was guessed, then Liquidation will occur and everything will be lost.

But many beginners make the mistake of using high leverage to get bigger profits but also go all in for futures trading, it is even a stupid long-term trading decision.
A professional alone will not use all his money for futures trading, let alone use too high leverage.

That is super risky why did he invest in Meme tokens like Pepe it does not have any use and the thing here is he doesn't know how to use a stop-loss.

He used a meme coins because I guess it is more volatile and such can give faster profits. Maybe, he didn't use stop loss because his capital was much and as such he didn't think he could be liquidated.

Expect to take a lot of the difference that occurs when PEPE price fluctuations move, but if you don't use Stop Loss, then it will be disastrous.
His fault was also that he did not monitor the trades made.

But it would be foolish to lose $1 million in assets because of futures trading in memecoin.

[mindrust]

Reference

“Just woke up and realised I got liquidated overnight. I was 3x long PEPE. I lost everything I had. I don’t even have $1000 in my bank account but had $1M in Binance. I have been in crypto since 2017. Today I lost everything,” he posted.

Play stupid games, win stupid prizes.

He was long... on PEPE which is the shitcoin of all shitcoins. It is the same thing as playing dice on your favorite online casino, with leverage. What was he expecting? Markets go up, he wins, markets go down, he goes bust. Hopefully he didn't make that $1m from spot trading. Otherwise that would have been even sadder. All that hard work gone in a matter of seconds.

Huge market movements like these delete all these fools from the game.

[Zaguru12]

That is super risky why did he invest in Meme tokens like Pepe it does not have any use and the thing here is he doesn't know how to use a stop-loss.
I see many traders got liquidated recently on the chart and almost billions were liquidated in two waves yesterday.
What I see here he does not have knowledge about risk management which is why he lost everything.

If you look at the leverage (3x) used I will say it wasn’t even that high compared to what other traders use and then open a very large position on the trade something like $300k as capital, what I sense is there was no stop loss at all or the Stop loss was way below the total capital in the exchange/broker. He might have also used an isolated margin also to get liquidated. He definitely was lacking risk management or might be just a pure gambler to to risk that amount on such volatile coin

[Hazink]

That is super risky why did he invest in Meme tokens like Pepe it does not have any use and the thing here is he doesn't know how to use a stop-loss.
I see many traders got liquidated recently on the chart and almost billions were liquidated in two waves yesterday.
What I see here he does not have knowledge about risk management which is why he lost everything.

And correction its not feature trading it is futures trading.

The higher the volatility, the higher his chance of making a profit. He never predicted the market to go sideways the way it did, and all this happened when he was not online, according to the story, and he has been in the crypto space since 2017 (still according to his statement), which is enough time for him to understand that the market doesn't work in one's favour all the time.
 
The most funny part of it all is where he said he didn't even have up to $1000 in his personal account, which means he gambled with his life savings and all went down in just one trade.
 


Side note: Thanks for pointing out the error; corrections have been made.

[Adbitco]

Here is where the problems lies most people are too confident with their trading because they felt the market is on the bull trend therefore it would be hard for them to incur much lost, feature trading is one of the most risky types of trading and from what I understood there is no stop-lose set for the trade. Unlike spot trading where one can easily control their trades, although is hard to believe this but sometimes we have to accept the risk associated with trading that is why we must get prepared in any form of trading we are going into today. Just imagine how someone uses a night to lose his wealth he has been building for the past 7 years just of a simple mistake he did without putting a spot-limit.

[Wapfika]

Reference

“Just woke up and realised I got liquidated overnight. I was 3x long PEPE. I lost everything I had. I don’t even have $1000 in my bank account but had $1M in Binance. I have been in crypto since 2017. Today I lost everything,” he posted.

This is one disadvantage of future trading. You can make a fortune over night trading on future, but you can also lose it all if you don't apply good risk management. It's obvious that this man did not set a stop-loss point; his greed overshadowed him with too much confidence that the bitcoin price can't dump since the halving is just around the corner.

It's hard to experience total liquidation like this on spot trading, but if I thought Binance by default doesn't allow 100% liquidation on future trading, at least it will automatically stop in the range of 85–90% of the trader's total assets they always tries to leave you with something.

This guy forgot the use of stop loss which is the number one tool needed on futures trading. I’m surprised that he can risk 1M with x3 leverage on a highly volatile asset like PEPE without any stop loss.

He is the favorite customers of exchange because they have huge money while doesn’t know what he is doing. Manipulation is very popular in crypto since exchange is not thoroughly regulated. A simple price swing both side will liquidate asset that use a leverage without any stop loss.

[KingsDen]

That is super risky why did he invest in Meme tokens like Pepe it does not have any use and the thing here is he doesn't know how to use a stop-loss.

He used a meme coins because I guess it is more volatile and such can give faster profits. Maybe, he didn't use stop loss because his capital was much and as such he didn't think he could be liquidated.

Expect to take a lot of the difference that occurs when PEPE price fluctuations move, but if you don't use Stop Loss, then it will be disastrous.
His fault was also that he did not monitor the trades made.

But it would be foolish to lose $1 million in assets because of futures trading in memecoin.

I remember when I was new in the cryptocurrency industry, when I was scammed consecutively online. It was easy for me to send $1,500 or $2,000 to people. At a time, I realised that if I changed the money to fiat, it will be so difficult for me to count such amount of money, which is in millions in my currency and give to someone I don't know online. With this same analogy, it would have been difficult for this man to use 1 million dollar in fiat nature to trade. But I will be so easy to wire it from portfolio.

[taufik123]

I remember when I was new in the cryptocurrency industry, when I was scammed consecutively online. It was easy for me to send $1,500 or $2,000 to people. At a time, I realised that if I changed the money to fiat, it will be so difficult for me to count such amount of money, which is in millions in my currency and give to someone I don't know online. With this same analogy, it would have been difficult for this man to use 1 million dollar in fiat nature to trade. But I will be so easy to wire it from portfolio.

At the end of the day it is about the realization that whatever it is even in the form of crypto Assets, Fiat is all very valuable according to its value.

I also sometimes make foolish actions by investing in memecoin without thinking that the nominal I invest is quite large around $1k-$2k,
and yes just like you, it will be worth millions and quite a lot of fiat money that I will hold for the needs of my life.

Now I am beginning to learn to appreciate everything that is valuable, look more at how it is produced and certainly do not commit foolish actions by trading futures without knowing the knowledge and investing in new projects that are not clear.

[GbitG]

Hmm That's pure foolishness in my opinion. You can't take futures trading for granted. Firstly, he didn't set a stop-loss for his trade which is why he got liquidated and lost everything, secondly, he was doing it on a meme coin  which we know is extremely volatile and even an exchange would warn you about this when you are going to make a trade in such cryptocurrencies so that you understand  how volatile and unpredictable they can be.

One more thing is that he had all the money he had invested in a single trade which is even more foolish. You can't put all your eggs in one basket and then regret when they are broken. One should have only a portion of their holdings in an exchange for trading so that even if they lose that, they don't lose everything.

[Gladitorcomeback]

The market gave him an unpleasant surprise, lol. 

I can't even imagine how it must feel to go to bed having a million dollars in your account and waking up to having nothing as all of it is gone, it's lost. This is a classic example of why one shouldn't put all their eggs in one basket.

Someone investing or having $1m in their account can't be a beginner, so I wonder how he didn't take any precautions while having such a large trade open. It's understandable that he wasn't expecting Bitcoin to dip so much all of a sudden, but then again, we know how unpredictable the market is.

[Alone055]

Have been using cryptocurrencies since 2017 and still had all his money in a single trade without any stop-loss or anything, he is an experienced newbie as it seems because someone who has been around for quite some time already should know how things work and if you have $1M in Binance, you should be able to determine how futures trading works and what actions must be taken for each trade, otherwise, a simple mistake can cause you this much damage and you will be left with nothing at all.

We need to learn a lot of lessons from his mistake, first one is not to be too confident about anything you do because things can always go against you, the second one is to adopt diversification all the time, and the third one is always leave something behind to avoid getting in too much trouble in case things don't go the way you have wanted them to go.

He was a millionaire a few hours back when he was awake, and when he woke up after sleeping, he found out that he wasn't a millionaire anymore. That's how unpredictable and unfair life can be sometimes. 

[GreatArkansas]

I can't even imagine how it must feel to go to bed having a million dollars in your account and waking up to having nothing as all of it is gone, it's lost. This is a classic example of why one shouldn't put all their eggs in one basket.

Exactly! Maybe this trader is really not a trader, he could be a gambler or something playing only and joking on 1 million dollars.
Because if you are a trader with an account size of this (just for me) this is already huge to me and seems I can't sleep with there is active trade open even there is a stop loss 

[MusaMohamed]

Reference

“Just woke up and realised I got liquidated overnight. I was 3x long PEPE. I lost everything I had. I don’t even have $1000 in my bank account but had $1M in Binance. I have been in crypto since 2017. Today I lost everything,” he posted.

Someone can believe in themselves and their trading positions that with low leverages like 2x, 3x, they will not be liquidated.

The example above shows that risk always exists when you use leverages no matter the leverage you use is low or high. When you use an leverage, it contains risk and risk only is smaller or bigger depends on low or high leverage chosen. In normal days when the market is normal, does not have high volatility, low leverages will make you feel it's safe.

It misleads you that you can sleep well over night in every night but it is untrue. Nights when market has high volatility, you can sleep well but when you wake up, you will see your account was liquidated. Nightmare occur during your 'well-slept' night.

[adaseb]

3x might be safe for perhaps bitcoin. But never altcoins. He most likely longed at 0.006 and was liquidated when it hit 0.004 which is a 33% losses and under 3x long that’s enough to liquidate someone.

Very crazy to have such a huge position and only $1000 in your bank account. This is why you shouldn’t believe all those promoters which show their 6-7 figure gains, many of those can be just as easily lost.

[Hamza2424]

Binance features trading. am I unfamiliar with this term, haha I know it is a typo error, anyway $1M is not a big amount hehe when it comes to one of the biggest losses in the market, people lost millions in futures just because of their dumb decision, TBH when its comes to Future you need to be always ABC, always be careful because things are not easy there, first of all, the market is volatile and secondly on the high leverage there's a high risk to reward ration.

Risk management requires expertise there, with a lowly risk magnet and undisciplined manner you can never win in futures trading also I consider it haram because of some religious restrictions on the financial system.

[poodle63]

the risk that accompanied with future trading, if you got rekt then you're rekt for good there's nothing that you can do to prevent yourself from losing meanwhile with spot trading people can just wait until next opportunities even if it took years so long someone can get their money back from the unrealized loss, they're fine, thats the perk with spot trading but definitely not with future, high leverage means you lost your money faster, not to mention that the market keep having price swinging means we are really vulnerable to losing money just within a blink of an eye, but people still favour future since as I've observed many people only allocate 1-3% of their money to future trading only the reckless ones are just going full to the future trading with 25x leverage like above that gonna have miserable end, but also could have really lucky trade if the coin somehow increases.
but overall, is it worth getting that small chance of becoming riching within a night by risking entire wealth in one go? I think not.
over leveraging is just reckless in my opinion.