⚠️ IMPORTANT NOTICE ⚠️

This is important for new traders who love using leverage (futures).

No matter where your liquidation price is,

you are never truly safe in leveraged trading.

Because you are always facing:

*Extreme anomalous wicks

*Exchange risks (maintenance margin, funding rates)

What is an anomalous wick?

An anomalous wick is an extreme price spike that happens very briefly on the chart

(often only seconds to minutes).

It does not reflect the real market price,

but it is more than enough to liquidate leveraged positions.

Simple explanation

In a candlestick chart:

Body = the “normal” price movement (open–close)

Wick (shadow) = the price that was touched momentarily

👉 Anomalous wick =

a candle wick that extends abnormally far from the body,

unnatural, and returns very quickly.

Concrete example

For example:

SOL is trading normally at $140

Suddenly, the price wicks to $165 for 3 seconds

Then immediately returns to $142

Spot traders may ignore it.

Leverage traders may get liquidated instantly.

Why do anomalous wicks happen?

Main reasons include:

1️⃣ Thin liquidity

Low trading activity

Illiquid pairs

Shallow order books

➡️ A large order can instantly move the price

2️⃣ Liquidation hunts

Many long or short positions clustered together

Exchange or market makers push price into that zone

➡️ Cascading liquidations → long wicks

3️⃣ Sudden news or technical glitches

Data errors

Unexpected news

Exchange bugs (rare, but possible)

4️⃣ Cross-exchange imbalance

Price spikes on Exchange A

Exchange B follows briefly

➡️ Arbitrage causes a short-lived spike

Final reminder

If you are just experimenting with leverage

and do not fully understand these risks,

👉 It is strongly not recommended.

Leverage trading is not about prediction —

it is about survival against things you cannot control.

$BTC

BTC
BTC
95,126.7
-0.67%

$BNB

BNB
BNB
931.14
-0.19%

$SOL

SOL
SOL
143.42
+1.30%

#LeverageRisk #BinanceSquareTalks