Has this happened to you before?

[Oshosondy]

Let us assume a coin called X is moving within $1.2 to $3 for many weeks, you think that its price can not get to 2x. You used that to open a long position with your $100, thinking it can not get to $6 from $3.

That means you think the price of the coin will be falling or later fall after getting to $3. You set 1x long position which mean the liquidation would be around $6.

In just less than an hours, the coin trading volume suddenly increase which make the coin X to move from $3 to $10 within 45 minutes, but your money got liquidated at $6, which means even going for slightly lower than 1x leverage still can result to liquidation.

Has it happened to you before? Volatile coins trading is very risky

[Odusko]

I think you are mistaken, you use long in this thread instead short position, check if you use long and the price increases to $6 from $3 opened entry you be in profits, but if you short on the coin from $3 and the price increase to $6 then you be in loses and possibly get liquidited, I think you are confusing the two but yeah I understand what you are trying to say clearly.

[Alphakilo]

Let us assume a coin called X is moving within $1.2 to $3 for many weeks, you think that its price can not get to 2x. You used that to open a long position with your $100, thinking it can not get to $6 from $3.

That means you think the price of the coin will be falling or later fall after getting to $3. You set 1x long position which mean the liquidation would be around $6.

In just less than an hours, the coin trading volume suddenly increase which make the coin X to move from $3 to $10 within 45 minutes, but your money got liquidated at $6, which means even going for slightly lower than 1x leverage still can result to liquidation.

Has it happened to you before? Volatile coins trading is very risky

Volatile coins trading is indeed very risky, that's why the best risk management practice, is to move away from price prediction.
You would have actually made a good profit if you opened a long position about the price going up, but according to your post, you did open a short position on the price that it would go down.

Well, this hasn't really happened to me, but it's better to learn from the experience of others than to learn from an irrecoverable experience of loss.

[Asiska02]

In just less than an hours, the coin trading volume suddenly increase which make the coin X to move from $3 to $10 within 45 minutes, but your money got liquidated at $6, which means even going for slightly lower than 1x leverage still can result to liquidation.

Has it happened to you before? Volatile coins trading is very risky

Volatile coins are very unpredictable and the best thing is to even stay away from them and not even consider placing a trade on them. I have actually came across such instances and I was able to manage them because of the approach I have used in trading the market which puts me in not a very big disadvantage as a result of the change in volatility of the pair I was trading. Risking not too much and within the limit to which you can lose will help you mitigate such situations in the market.

One may have the best technical analysis and a very volatile coin can still go against it. It is better to stay away from them, or at least, risk what you can afford to lose on them. Trading works perfectly when you’re transparent to your activities in the trading market. Trying to make things more complex and hard to understand could make you really feel nervous when what you’ve planned and anticipated  don’t go your way.

[passwordnow]

I think you are mistaken, you use long in this thread instead short position, check if you use long and the price increases to $6 from $3 opened entry you be in profits, but if you short on the coin from $3 and the price increase to $6 then you be in loses and possibly get liquidited, I think you are confusing the two but yeah I understand what you are trying to say clearly.

Yeah, it is what I've understood that it should be a short position because he's thinking of the coin is gonna get dumped. But the opposite has happened and the shorts got liquidated while the longs got their profit. I don't trade in the futures but this is usually happening when sudden news comes out that affects the market and I am sure those that have been into leverage have experienced this, all they have got is the notification that they've been liquidated.

[HONDACD125]

Let us assume a coin called X is moving within $1.2 to $3 for many weeks, you think that its price can not get to 2x. You used that to open a long position with your $100, thinking it can not get to $6 from $3.

That means you think the price of the coin will be falling or later fall after getting to $3. You set 1x long position which mean the liquidation would be around $6.

In just less than an hours, the coin trading volume suddenly increase which make the coin X to move from $3 to $10 within 45 minutes, but your money got liquidated at $6, which means even going for slightly lower than 1x leverage still can result to liquidation.

Has it happened to you before? Volatile coins trading is very risky

First things first, you have made a mistake in your post by mentioning "long position" instead of "short position" as mentioned by @Odusko as well. You should edit your post and rectify that.

That being said, there is no doubt that futures trading is extremely risky, especially if you are trading extremely volatile cryptocurrencies. We often say that futures trading is for experienced traders only, and those with no experience and less knowledge can barely survive in it, but even experienced traders can lose money if they trade coins such as the one you mentioned.

When someone wants to take the risk of trading such coins or tokens, they should at least use proper stop-loss with their trades so that they don't lose all the capital they have used for such a trade.

[Bitcoin_Arena]

This happens a lot with those newly listed perpetual contracts of low market cap coins. Some exchanges do try to put up warnings about the high volatility of such coins and also limit the maximum leverage and position size a trader can open. This is because a lot of people lose money in that gambling-style kind of trading. It's all attractive and looks like one will get massive profits if the coin price goes in the desired direction, but the high volatility will always liquidate the positions in no time with the bull or bear traps.

[Zaguru12]

In just less than an hours, the coin trading volume suddenly increase which make the coin X to move from $3 to $10 within 45 minutes, but your money got liquidated at $6, which means even going for slightly lower than 1x leverage still can result to liquidation.

Has it happened to you before? Volatile coins trading is very risky

Yes this has happened before to me it is usually on memecoins, you know on crypto exchanges the memecoins actually do not get fast spot listing but they are easily listed on the future market for leverage trading. Mate I used a very low leverage for the popular $Trump coin then, I caught it around $12 or so but the market cap was then below 3 billion so my assumption was that this will actually not be able to go past 5 billion market cap so i actually short it and then had stop loss above 6 billion market cap which was around $30 then.

Immediately the announcement of it been listed on multiple top exchange spot most especially binance announcement then I simply got liquidated or stopped out immediately. One of the lucky was that I knew I was gambling so I used isolated margin, but even at that I think my biggest advantage was the stop loss because I would still have lost lots.