$1.54 billion in crypto liquidations: the next step for leveraged traders

The crypto market has lost leveraged positions worth $1.54 billion in the space of 24 hours. The losses hit 237,314 trading accounts, and $1.29 billion of them sat on the buy side. Trading with leverage therefore requires two numbers: your own liquidation price and the collateral the account can still carry. A liquidation is not a price move that can be made back. The process ends the position and uses up the collateral posted against it. That is what separates leveraged trading from a holding in your own wallet, which simply sits through a drop.