Read? Bitcoin and Ethereum crash by more than 12% in 6 minutes as more than $1B of positions gets liquidated
Walan!
About $1.1 billion worth of futures positions of more than 70,000 traders were liquidated across all exchanges, according to market data site Bybt. Nearly $400 million was liquidated on each OKEx and Huobi; followed by BitMEX ($164M) and Binance ($86M).
Becoz John McAfee didn't eat his own dick on TV by July as promised, lol.
ReplyDeleteWalan! Both long and short can also lose money on the same trading day! Double edged sword kills both.
ReplyDeleteThe sudden price drop has liquidated nearly $1.4 billion worth of positions across major exchanges, as noted by derivatives data provider Bybt.
The price drop triggered $144 million worth of sell liquidations or forced closure of long positions on BitMEX, the highest since May 10, according to data source Skew.
The Seychelles-based exchange also registered buy liquidations or forced closure of short positions worth $7.6 million.
Within the previous 24 hours, at least 72,422 positions were liquidated, with the largest, that of $10 million, occurring on BitMEX.
Nearly 95% of BitMEX liquidations were long positions – a sign the leverage was skewed to the bullish side – which isn’t surprising given the cryptocurrency recently charted a bullish breakout with a move above $10,500.
At press time, the cryptocurrency was trading near $11,031, representing a 5.5% drop on a 24-hour basis. Prices are still up nearly 57% on a year-to-date basis.
If you are in crypto this is nothing of a drop very normal in the life of trading cryptocurrency.
Delete1. selling order-flow data to electronic clearing houses
ReplyDelete2. lending out idle cash balances (the big brokerages each have trillions of idle customer cash)
3. lending out your stocks, bonds, etc.
Less revenue than before. But nowadays all computerised & faceless, no need much staffing. After the big initial capex, the ongoing opex for maintenance, gradual upgrades, acquiring & keeping customers is relatively small.
Hi Uncle Temperament,
ReplyDeleteI thought US stocks are now doing very well? Definitely look better than SG's.
"Since both long & short can lose money at the same time, who makes all the money?" - I guess the forced closure of short positions is cos those crypto that were used to loan the shorties got liquidated?
Yeah operator makes the most money. Lol.
If you do a side-by-side comparison of the 13 US industry sectors, you'll see wide differences in performance YTD (or even over last 5 years).
ReplyDeleteSimilarly by capitalisation size or growth versus value.
So it's not quite true that there's a mismatch or diversion of Wall Street versus Main Street. Everybody looks at the S&P500 but the S&P500 is going up because it's cap-weighted and currently very heavy into those "virus economy stocks" that are chionging.
Employees on Main Street who happen to be working in "virus economy companies" are also doing very well! ;)