Why do liquidations occur during pumps and dumps, even if the futures price stays below the liquidation threshold?
It’s due to the fair price, which tracks the spot price.
For instance, as shown in the post’s screenshots: the spot price is $0.41 (left), while the futures price is $0.29 (right). If you hold a short position at $0.25 with a liquidation level at $0.35, and the spot price reaches $0.35, you’ll be liquidated, even though the futures price remains at $0.29.
Does this apply in reverse? Will you secure a profit if the fair price is more favorable than the futures price? In practice, no profits are based on the futures price, not the fair price.
This is how Mex traps traders, so always monitor the fair price closely.
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Bitcoin >100 is Inevitable🔥