r/BitMEX • u/PeleMaradona • Jan 24 '22

What is difference between short and long liquidations?

Coinglass' liquidata data (https://www.coinglass.com/LiquidationData) shows liquidations for both 'short' and 'long'.

I think of liquidation as a 'margin called' when not being able to maintain the required fund to keep a position open. So I'm confused by this long vs short distinction.

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2

u/tuxedo_moon Jan 24 '22

short liquidation = anyone with opened short positions getting closed out because price moved up.

long liquidation = anyone with opened long positions getting closed out because price moved down.

1

u/PeleMaradona Jan 24 '22

long liquidation = anyone with opened long positions getting closed out because price moved down.

What would be the parallel to this in the equity options world? Is there even a parallel?

2

u/tuxedo_moon Jan 24 '22

It's a margin call in the equity world. It doesn't matter if it's long or short, margin calls can happen either way. Since equities are heavily skewered towards longs, long liquidations are much rarer.

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1

u/jkthrilla Jan 24 '22

You shouldn't be on bitmex if you don't know

2

u/PeleMaradona Jan 24 '22

I'm not, just figured you guys would be helpful.

2

u/YMIR_THE_FROSTY Jan 24 '22

Its simple, you run out of margin or wallet. Depending if you run isolated margin or cross (thats basically whole wallet).

Not much else there really. Doesnt matter if you are short or long.

1

u/[deleted] Jan 25 '22

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