This is How Risky it is to trade futures - over $1, 148, 000 Lost in one night

[Faisal2202]

You are absolutely correct, Binance is said to have a mechanism that ensures that only 83% percent a user's funds gets liquidiated in times of like this when a user loses a trade completely without a stop loss, so this is why the user received back 17% of the total amount he lost, this is definitely small when compared to how much was lost, but it's still way better than nothing at all, and also, it's a good foundation for the user to start over with.

Oh ok, I did not know about this feature until the OP post, so, you are saying we only get %17 when we don't set stop loss and all of our funds get liquidated. Or no-stop loss and such instant dump situations can give %17 funds back. Thanks for the Karma. It keeps the spirits up.

And no doubt the funds are small in compared to what he has lost but still he has something in his hands to start his journey again. I hope he will be okay now, although I did not hear any news from Binance's side, as they might use this case as publicity but they did not. Or my thoughts are a little small due to a lack of knowledge.

If that is so that they have 83% of user funds liquidated then is a good thing but is best for people who uses huge funds and trades overnight should capitalise the habit of using SL

You are right, but I doubt the fact that this feature is only for those who have huge funds, I mean if that's the case then it's not a good thing, this feature should be given to the poor or the ones with lower funds too.

[Mr. Magkaisa]

            -  It seems like he has been saving it for a few years in the crypto space, and it is likely that the things he has saved are also from his earnings here in the crypto business that we live in. That's a lot of money. Didn't he put a stop loss on what he did?

Because if there is a stop loss, it's just where he set it, and that's the only loss that can be deducted from his balance? But thankfully, he still has a balance in his Binance account; we just don't know why. But even so, $180,000 is still a huge amount for him to start over.

[Charles-Tim]

            -  It seems like he has been saving it for a few years in the crypto space, and it is likely that the things he has saved are also from his earnings here in the crypto business that we live in. That's a lot of money. Didn't he put a stop loss on what he did?

I do not think he used stop loss. Know that trading is beyond using stop loss. With huge amount of money, low risky trading is better which is spot trading.

Because if there is a stop loss, it's just where he set it, and that's the only loss that can be deducted from his balance? But thankfully, he still has a balance in his Binance account; we just don't know why. But even so, $180,000 is still a huge amount for him to start over.

The person will be depressed if he has no much more than that. He needs also not to start all over again because he will likely lose all the money if he continues to trade. He should just hold instead.

[Stompix]

I do not think he used stop loss. Know that trading is beyond using stop loss. With huge amount of money, low risky trading is better which is spot trading.

He didn't, he got liquidated!
Once the liquidating was triggered the percentage of the sum, the margin call were returned to him.

The person will be depressed if he has no much more than that. He needs also not to start all over again because he will likely lose all the money if he continues to trade. He should just hold instead.

Yeah, good advice but guys who go full 1 mil into leverage trading on altcoins won't follow up.
He had 1 mill, but he now has only a fragment of it, guess what the urge that won't let him sleep, make that back as fast as he can, and only then he thinks he will be able to stop.  This is not trading, this is pure gambling, and gambling is one of the last place where you search for people making reasonable decisions.

we just don't know why. But even so, $180,000 is still a huge amount for him to start over.

If that million was made through the same risks as this trade, quitting would be better than starting over.

[jeraldskie11]

The only problem I see with the owner of those account is that he didn't put a stop loss. Literally, if you don't put a stop loss in your trade no matter how far the liquidation there's still a risk of losing your capital. And there's a worse, if ever you forgot to put  a stop loss and you are currently using the cross-margin mode, you are risking not only the margin but the overall port if the price went to the opposite direction. To prevent this kind of stuff, no matter how good the setup is, always put a stop loss.

[Sim_card]

I think that it is better if we most do future trading we use stop loss to prevent such great loss. This trader should be grateful to Binance for that mechanism that stops loss automatically when the loss is upto 83%, if not he would ha e lost everything, and he will put the blame on cryptocurrency instead of his careless action, and trading with an amount that he cannot afford to lose.

[vegasus]

The trading feature is more like gambling. Moreover, if you cannot optimize detailed market analysis, strategies for encountering the loss, then be prepared to lose money very easily in future gambling.

Imagine if many beginners were actually more interested in doing future trading just because they saw their senor share trading signals or future trading results with increases of thousands of percent. And in reality, it's done by professionals, and whether it's real or not. But for beginners, it's just a scheme for losses.

Because of this, it is quite difficult for beginners to quickly understand and be able to analyze the market well and wisely. So the result is deep loss, excessive greed by using high leverage without other considerations.

[bayu7adi]

It's scary... even if you think about it, why would this person put most of his assets on Binance??? Isn't that a big risk that could trigger unreasonable trading or investment decisions? In fact, he wasn't the only one whose assets were liquidated, there were many other people who also had their assets liquidated when they tried Binance Futures.

Lesson for all of us, if we are not ready to lose everything overnight, never play Binance Futures with most of our money and also don't force it with large leverage... mastering Spot trading first seems like the wisest move... Rushing into Binance Futures because we are tempted by the potential profits shared by our friends on social media is a fatal mistake.

[emmybd]

Cryptocurrencies are known for their high volatility, which can lead to significant price swings.

Futures often involve leverage, which means borrowing funds to increase potential returns. While this can amplify gains, it can also magnify losses, sometimes exceeding the initial investment.

The mechanisms of futures trading can be complex and confusing, especially for inexperienced traders.

[Gladitorcomeback]

He made a mistake and had to face a situation of a lifetime. When you are trading in the futures market, you need to make sure that you have all the risk-management measures set and have your stop-loss and stuff all set because the market is highly unpredictable and volatile and anything can happen at any time, so you can't be so confident to not set a stop-loss and go to bed with so much risk.

I'm pretty sure he didn't do any analysis as well because if he had done so, he would surely set a stop-loss before going to bed because doing analysis makes one realize or at least have an idea that the market is going to go up or down and they can make their decisions accordingly.

[akeemqaz]

Many people dont know how risky futures trading is. Whenever I trade, I believe I'm trading to lose. So when I see profit, I take it. Same as buying altcoins which I use a feature on Bitget call smart portfolio to automatically take profit from them.

[IvugeoEvolutionCoin]

Many people dont know how risky futures trading is. Whenever I trade, I believe I'm trading to lose. So when I see profit, I take it. Same as buying altcoins which I use a feature on Bitget call smart portfolio to automatically take profit from them.

I think all trading has risks, even trading in our own way also has risks that can make our assets disappear, so never be afraid of the risks, continue to face everything in the right way and remain alert to the situation in the market. Don't be easily influenced by price increases that occur temporarily because it could just be a trap.

[Captain Corporate]

Interesting thing is that you can't really lose this much unless you "bet" this much. Not like people are forcing you to make these wild claims, so when someone loses 1.1 million dollars, understand that they were aware of 1.1 million worth of trade, they were aware of the risk. Nobody knocked on their door and asked them 1.1 million suddenly, they knew what they were getting into when they made this trade. So, while it is definitely a big risk, its also a risk that they knew they were taking, and they assumed that they could change their entire life with one trade, and ... well they did.

[gunhell16]

The only problem I see with the owner of those account is that he didn't put a stop loss. Literally, if you don't put a stop loss in your trade no matter how far the liquidation there's still a risk of losing your capital. And there's a worse, if ever you forgot to put  a stop loss and you are currently using the cross-margin mode, you are risking not only the margin but the overall port if the price went to the opposite direction. To prevent this kind of stuff, no matter how good the setup is, always put a stop loss.

I honestly, even though I know myself that somehow I already know something about trading, when I know that my assets in the trading exchange may be in jeopardy just because of futures trading, I will never actually transfer funds. Although it is also possible to make a profit here, in these situations you can't make a mistake. Remember that.

Now, if we really want to make a profit in trading, it is still spot on to say if it is safest to do it as an individual trader. But thanks to the OP, at least the 179k$ fund was returned to the wallet balance so he could start again, so why did he get another fund? That's what I really don't understand either.