The Hyperliquid exchange is among the most frequented in the trade. It is also one of its biggest traders has come up with a very risky bet. They sold short 234.13 by 22.54K of Solana. Their short stand is at a present value of at 25.67 million of $SOL. The mean cost of accessing this giant is 236.24. This action suggests that it is highly expected that the cost of Solana would decrease. The reason that causes the shorting is that the trader is of the opinion that the prices are falling downwards. At a later stage, they will repurchase at a reduced price and profit the difference. What Is Hyperliquid HyperLiq will be a blockchain, and they will be targeted at carrying out swift and smooth financial transactions. It is common with the serious traders. It is possible that people can trade such derivatives as perpetual future also known as perps. Without possession of an asset, traders bet on the price of the same, which makes them contracts. Another feature that defines the platform is performance that is fast such that large traders have been identified to perform at high speeds. This is probably the reason why this best trader selected Hyperliquid. Risk and Leverage Explained This is a very dangerous case of this trader. The liquidation price is $474.50. It implies that it will automatically be closed in case Solana will increase to such a price. The trader will not receive the margin that he/she had set. In this example the numbers indicate that the leverage is contended to be approximately 50x. High leverage means that a trader uses much money and puts his position size in the form of loans. It also predisposes any minute changes in price more. In the present scenario, Solana has a value of 237.60 and it is slightly higher than the average price when compared to the trader (236.24). The position is too close to the breakeven. What Should You Do Monitor the price of $SOL in such exchanges as CoinMarketCap or Hyperliquid. A decrease below 234.13 could be an indication that the plan of the trader is still on course. You must be leery in that line of business. The leverage jobs are also risky and have the potential of leading to colossal losses. Learn the liquidation points using tools, and must know the risks prior to trading.
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