🚨 LIQUIDATED WHILE IN PROFIT?! THE MARK PRICE TRAP 😱
Did you know you can get liquidated even when your trade is deep in the green? It sounds impossible, but it just happened to me on $RIVER
📉 The Setup: • My Entry (Short): 29.15 • Binance Futures Price: 28.09 (I was in solid profit!) • The Result: LIQUIDATED. ### 🤔 How is this possible?
While the price on Binance Futures was falling, the price on other platforms - including Binance Spot (Alpha) - stayed much higher.
The Culprit: Mark Price vs. Last Price. • Last Price: What you see on the futures chart (28.09). • Mark Price: The average price across multiple exchanges used to calculate liquidations.
Because the price on other exchanges didn't drop as fast, the Mark Price hit my liquidation level even though I was technically "in profit" on the futures chart.
The Outcome: I walked away with a small profit since the trade closed at 28.09, but the liquidation fees and the forced exit killed my potential gains.
💡 Pro Tip: Always watch the Mark Price, not just the chart. If the spread is too wide, add more margin to avoid getting "technically" wrecked!