Big money does not protect against liquidation if misused.
The details are as follows:
1️⃣ Leverage is a dangerous weapon even for whales
Most whale liquidations occur in futures contracts (Futures).
A whale enters a trade with 20x or 50x leverage
A small movement of 1–3% against the trend
➜ Leads to complete liquidation
💡 The larger the trade size, the smaller the margin of error.
2️⃣ Whales sometimes make mistakes like everyone else
Having money does not mean:
Always knowing the trend.
100% control of the market.
The market may move due to:
Surprise news 📰
Liquidating other whales (Domino effect).
Or even temporary manipulation.
3️⃣ Some whales intentionally take risks.
Not every whale preserves capital:
Some are short-term speculators.
Some enter high-risk trades to achieve quick profits.
Loss is part of their strategy.
📉 The liquidation here is a calculated loss, not a bankruptcy.
4️⃣ The market targets liquidity zones (Liquidation Zones).
Whales and big traders:
They place stop-loss orders.
Or they have clear liquidation points.
📌 The market inherently attracts liquidity.
That’s why you see:
Hitting the stop-loss.
Then the price reverses immediately.
5️⃣ Not every "liquidated whale" lost all its money.
Very important information 👇
When you see:
"A whale with a value of 10 million dollars has been liquidated."
This means:
Only one trade.
And not all wealth is whale wealth.
6️⃣ Sometimes liquidation is part of a larger plan.
Some institutions:
Entering fake trades.
Liquidated intentionally.
To achieve another goal in the spot market.
🎭 The market is smarter than it seems.
The golden summary 🧠
🔹 Whales are liquidated because:
Leverage is unforgiving.
The market respects no one.
Mistakes happen no matter how big the capital.
🔹 And you as a trader:
Use a small leverage.
Do not mimic whales without understanding.
Monitor liquidity zones instead of just the trend.
