A whale trader holding a 40x long position on Bitcoin faced three margin calls in just half an hour, resulting in significant financial loss. Initially, the trader had amassed profits of $4 million from their position. However, the rapid market fluctuations led to a series of margin calls that quickly eroded these gains. Within a short span, the situation deteriorated, transforming the profitable position into a loss of $238,000. This incident highlights the risks associated with high-leverage trading in volatile markets, particularly for assets like Bitcoin. Margin calls occur when the value of an account falls below the required maintenance margin, prompting the trader to either deposit more funds or close positions to cover the shortfall. The whale trader’s experience serves as a cautionary tale for others engaged in similar trading strategies.
