24-Hour Cryptocurrency Perpetual Futures Liquidation Volume and Liquidation Ratio

IconCryptoNewsTerminal Staff08 Jul, 2024

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24-Hour Cryptocurrency Perpetual Futures Liquidation Volume and Liquidation Ratio

The perpetual futures 24-hour liquidation volume for cryptocurrencies is an indicator of the market sentiment and volatility in the cryptocurrency market. It gauges the total value of positions that have been forcibly closed due to insufficient margin or leverage. A high liquidation volume suggests intense market volatility and elevated risk. The liquidation ratio, on the other hand, measures the percentage of positions liquidated compared to the total open interest, providing insights into the market's stability. A higher liquidation ratio indicates a more significant portion of open positions being liquidated.