Liquidation in Crypto Futures, from Factors to How It Works

 Learn about liquidation in crypto futures trading, from what the contract is to how it works. This article discusses the factors that cause liquidation, the process, and the importance of risk management for traders to avoid financial losses. Discover strategies for success in the world of crypto futures!

A futures contract is an agreement to buy or sell an underlying asset at a specified price at a specified date in the future. This is a type of derivative contract. These contracts are important in financial markets as they provide traders with opportunities to hedge or speculate.

In this article, we will discuss this type of trading about crypto liquidations and try to understand why crypto liquidations are a valuable tool.

Understanding Crypto Liquidation in Futures Trading

Crypto liquidation in futures trading is about closing positions to balance the initial trade. If a trader has a long position, meaning they want to buy the asset, they must sell the contract to liquidate it. Conversely, if they have a short position, meaning they want to sell the asset, they must buy back the contract to complete the liquidation.

Crypto liquidations are common in futures trading, but traders should think carefully about the effects. This includes looking at how leverage can affect trading results.

Not knowing how crypto liquidation works can lead to major financial losses, especially for new traders who may not fully understand futures trading. In other words, traders who do not know when and how to manage their positions risk liquidation.

Basics of Crypto Liquidation in the Market

Crypto liquidation in futures trading depends on margin requirements. When you trade futures, you must deposit a percentage of the contract value as a margin. It serves as collateral to cover possible losses.

When the price of the underlying asset changes, margin requirements also change. If a trade goes against you and your margin account falls below a certain level, known as maintenance margin, you will receive a margin call.

How Crypto Liquidation Works in Futures Trading?

Liquidation in futures trading occurs for two main reasons:

1. The first reason is voluntary crypto liquidation. Here, a trader decides to close a position before the expiration date of the futures contract. They may do this to take profits, limit losses, or change their trading strategy based on market analysis or risk appetite.

2. The second reason is forced liquidation. This occurs when a trader's margin account falls below the required maintenance margin level. This usually happens because the price of the underlying asset has fallen. In this case, the brokerage firm can sell the trader's position, no matter what their investment plans or outlook.

Crypto Liquidation Process for Traders

The liquidation process for people trading in the futures market has several steps. When a trader wants to close their position or if they get a margin call, the first step is to place an order against their current position. For example, if a trader is long on a futures contract, they would need to enter a sell order for the same type and number of contracts.

Profits go to the trader's trading account, while losses reduce the margin account. Traders need to keep an eye on their margin levels, especially during difficult market conditions. This helps them avoid forced liquidation and major financial losses.

Factors Leading to Liquidation in Futures

Several things can cause the liquidation of a futures contract. This affects both long and short positions. One major factor is that large changes in the price of the underlying asset can lead to large losses and margin calls.

High liquidity in the futures market can exacerbate this. Even small price changes can cause large fluctuations.

Changes in interest rates can affect the costs associated with futures positions. This can affect how profitable the position is and may lead to liquidation. It is important to know that futures trading uses leverage. This means that profits and losses can be magnified.

Traders should think about market risk, interest rate changes, and their risk tolerance. This will help reduce possible liquidation risks.

Conclusion

Knowing about crypto liquidation in futures trading is the key to success. When you understand the basics, you can move through the markets better. You can use risk management techniques is important.

Understanding trading strategies will also help you to avoid unwanted liquidations. By focusing on timing, predicting trends, and taking advantage of market changes, traders can make better choices.

Bitrue can help you do research before trading crypto futures. You can study before buying futures Bitcoin, Ethereum, Solana, XRP, and other crypto tokens. Also, find out how to convert prices from Ethereum to USD and other tokens easily on the Bitrue website.

About Bitrue

Bitrue is a leading cryptocurrency exchange, offering a wide range of digital assets, innovative features, and user-focused services. Founded with the mission to empower the world’s crypto enthusiasts, Bitrue continues to expand its platform with new products, events, and opportunities for users worldwide.

 

This Press Release has also been published on VRITIMES

The Evolution of Media: What Makes Effective Communication Through Media?

The way we communicate has changed, over time due to the evolution of media. Its important to grasp what makes communication via media impactful. With the rise of platforms like social media and digital channels alongside traditional newspapers and television the rules for communication have adjusted to suit these formats. This article delves into the aspects that make communication through media effective and how they can be utilized to achieve desired results.

Clear and Concise Messaging

Effective communication via media begins with messaging. In a time when people are bombarded with information it’s important to share messages that are simple and easy to comprehend. Whether it’s through writing, visuals or audio clarity ensures that the audience understands the message without any confusion. To achieve communication it’s crucial to steer clear of jargon use language and structure content in a way. For example a news article should present information in an order while a social media post should deliver its message in a concise and captivating manner.

Audience Understanding and Targeting

Knowing who you’re talking to and what they like is key, for successful media communication. Each platform appeals to groups of people so it’s important to customize your content to suit their preferences and needs. By studying your audience you can discover what they enjoy how they behave and what they’re into. For instance if a brand wants to reach out to millennials they might use Instagram and TikTok for eye catching visuals and fun interactions. On the hand if they’re targeting professionals LinkedIn would be the go to platform with content. Tailoring your message to meet audience expectations boosts engagement and makes a lasting impression.

Engaging and Relevant Content

Content that grabs attention and is relatable is more likely to engage an audience and spark interaction. Captivating content often incorporates storytelling, eye catching visuals and interactive features that resonate with viewers. Relevance ensures that the content speaks to trends, topics or interests that matter to the audience. For instance a blog post on the latest advancements in technology should delve into emerging tech and their potential impact. Meanwhile a video tutorial should provide tips that can be easily implemented. When content is engaging and relevant it builds a bond, with the audience and fosters ongoing engagement.

Consistency Across Platforms

When a brand communicates consistently, through media channels it reinforces its message and solidifies its identity. Uniformity in tone, style and messaging creates a cohesive brand experience for the audience. This consistency fosters trust and dependability as people come to recognize and connect with the brands voice and values. For example a companys social media presence should match its website content and advertising materials to uphold a brand image. Consistent communication also guarantees that key messages are effectively communicated across platforms.

Effective Use of Visuals and Multimedia

Using visuals and multimedia is essential, for effective communication in media. Things like images, infographics and videos can improve understanding and memory by simplifying complex information. Adding elements can also make content more interesting and memorable. For instance a social media campaign that features attractive graphics and brief videos can grab attention better than just text. Incorporating quality visuals and multimedia aids in delivering messages in a way. That resonates with the audience.

Timely and Relevant Updates

In media communication being on time and relevant is crucial. Giving updates makes sure that the information is up to date and shows the latest news or trends. This is especially true for news outlets where reporting is key, to keeping the audience informed. In fields like marketing and public relations quick reactions to events or customer comments show that a brand is responsive and attentive. For instance a company may issue a statement or launch a campaign in response to an event or trend to stay connected and engaged with its audience.

Interactive and Two-Way Communication

The way we communicate through media is evolving, with a focus on engagement and two way communication. Today’s media platforms enable interaction where viewers can share their opinions, pose questions and join conversations. This interactive method cultivurs a sense of community and involvement making the communication process more lively and inclusive. By promoting audience interaction through comments, polls and live chats we can boost engagement and gain valuable insights into audience preferences and feelings.

Conclusion

The changing landscape of media has brought about new ways of communicating highlighting the need for messaging that is clear, captivating and relevant. It’s crucial to know your audience stay consistent use visuals and deliver information on time to communicate effectively through media. Incorporating elements and engaging in interactions can further improve communication strategies. As media progresses adjusting to these principles will aid in creating messages that connect with audiences and yield impactful outcomes.

EXPOSED: Inside NAIA’s Notorious Taxi Syndicate – The Shocking Truth Behind Your ‘Friendly’ Airport Ride!

Wazzup Pilipinas!?


The notorious tale of the Ninoy Aquino International Airport (NAIA) taxi syndicate begins the moment you step out of Ninoy Aquino International Airport's arrival area. Tired from your journey, all you want is a quick, straightforward ride. But as you take in the sea of people, one man approaches, identifying himself as a taxi driver. He’s friendly, seemingly helpful, guiding you toward the taxi queue.

At first, nothing seems off. You’re led through the legitimate lines where taxis await, as uniformed guards watch. You’re told these are regular metered taxis. But once you reach the queue, this "friendly" driver now reveals the actual arrangement—a fixed rate, often exorbitant, depending on the distance. If you question him, his demeanor changes; suddenly, you're pressured with a "take it or leave it" choice. If you refuse to pay the steep rate, he casually waves you toward the official yellow airport taxis. But here’s the strange part—he doesn’t leave the queue. He stands there, waiting for the next unsuspecting traveler, his place unchallenged.

The more you observe, the more you notice a pattern. Taxi after taxi, drivers dictate rates, bypassing the meter, while passengers either concede or walk away. Despite the airport's strict rules that prevent drivers from refusing passengers or setting their own prices, these drivers remain bold, often ignoring the reprimands from the people manning the booth. They’re supposed to be kicked out of the line if they turn away passengers, yet they persist, as if they know no real consequences await.

The reason for their defiance has become an open secret: they’re covering costs for a "fee" to even access the arrival area. Rumored to be a syndicate within the airport itself, this organization reportedly charges drivers 200 pesos per entry. To recoup that cost and turn a profit, drivers ditch the meter in favor of inflated fares. Worse, the taxi drivers feel untouchable, operating under the apparent knowledge that someone inside the airport is protecting their interests.

Despite complaints, the cycle continues. Taxi drivers won’t back down, the airport staff remains silent, and the syndicate’s fee ensures the scam stays alive. It’s a racket so well-oiled that it operates under everyone’s nose, while the passengers are left footing the bill, often shocked by the reality lurking behind what seems like a mere transportation option.

The next time you step outside NAIA’s arrival area, take a hard look at the lines. The people in them, posing as regular taxi drivers, aren’t just looking for passengers—they’re part of a tightly controlled scheme designed to exploit arriving passengers, orchestrated under a system that seems impossible to break.