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.

[JeffBrad12]

This is why so many trading firm only long. The risk in shorting is asymmetric. You get infinite upside risk for only maximum of 100% gain when the coin become 0.

I personally don't really like shorting but sometime if the RR is good, I still short anyway. Even in long position you're still not immune to liquidation because funding rate make liquidation threshold higher than 0.

[Big Dirams]

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.

You are absolutely right though, I think the OP gets the long position and short positions mixed up but I did understands the OP perfectly just as you. Long positions are always the position a trader opens if such trader is expecting a currency pair to make a rise in price that is go for highs while in other word short positions are positions we open when we are expecting a price fall from any digital currency. But the OP got it mixed up but I do understands his point though.
 Such scenarios always occur to many trader and most of this traders has faces scenarios like this, that why many of this new tokens are not expected to be rely on that much and when trading then a proper risk management should be considered before jumping on them.

[0xredhot]

I agree this is definetely problem of new perp markets, you always need to look at liquidity and volume for certain markets if the liquidity and volume is low it is easier to get liquidated on those markets so safer is always trade top over $10M> liquidity markets if you do not know how these things work yet.

[michellee]

I guess that happens to me many times. Volatility is very risky and no one will realize what will happens. We should playing with the leverage that we can afford. That is prevention we can do.

Usually, I used small amount to leverage trading as I realize that the situation can change without notice. But if I see the price have a chance to increase to some level, I may use medium amount.

But using leverage means you fully know the risks that may happens so you don't trade more than you can afford.

[dimonstration]

Lots of newly listed token on Binance behave like this after dumping on the first month then suddenly pick up the price and pump to insane level like more than x10 with just a short of period of time.

Altcoins especially memecoin like $PIPPIN pump like a rocket for a day then dump hard again so setting any leverage will result to liquidation if you put money on wrong position or if you have short capital.

Some trader do a cross position using small capital for an open position then backed it with huge capital to extend the liquidation.

[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.

Yeah, it is what I've understood that it should be a short position because he's thinking that 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 usually happens when sudden news comes out that affects the market and I am sure those who have been into leverage have experienced this, all they have is the notification that they've been liquidated.

Both long and short position can be Very risky if the coin is highly volitilitle one and most often trader's still use higher leverage this keep them very close to their liquidation price and since most of those coins can take an unexpected direction is very easy to keep losing trading them and for some reason you keep losing from that hypes, future market is the most risky market in cryptocurrency and also the most advantages for trader's since you can easily make an insane profits from trading derivative.

[Powerjumboo]

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

You missed something here and that is that when I open a long position in futures trading, the more the price of the coin increases, the more I will profit. For example, if it goes from $1.2 to $3 and from $3 to $6, in that case, I will make a lot of profit in a moment and will not lose because I have opened a long position here. However, I have entered very few trading platforms and have done very few trading, especially I consider futures trading to be very risky. I do not enter futures trading platforms because I consider futures trading to be very risky. When I gain good experience by spot trading, then I will consider futures trading. I do not want to increase my losses by trading futures before that.

[programmer3666]

This actually brings back very painful memories for me but I actually learned from it though, something similar happened to me although mine was from the state of being new to the trading ecosystem, A meme coin was lunched then on Bybit so I saw the early momentum and I thought I could just fly in quickly and I entered the market with about $200 boldly without thinking twice, I was so confident that I didn’t even bother to set a stop loss because I had that believe the market will surely hit my TP and I even entered and dropped my phone with a very relaxing spirited and suddenly within some few seconds not even minutes!! The market moves like crazy against me and i t just fel like it was waiting for me to enter into the trade before dumping. As soon as I picked up my phone!! I saw a full liquidation message from Bybit, and I almost went nut. From that day I learned a very valuable lesson that new coins are very volatile and entering a trade without risk management is a dumb thing to do.