Back

Crypto whale opens $12 million leveraged MEGA long after closing Ethereum short

According to Onchain Lens, the trader entered a 2x leveraged long on MEGA and the position showed a floating loss of more than $840,000 over the past three days.

ETH

Summary

A large crypto holder, often called a whale, opened a $12 million long position in MEGA using 2x leverage after closing a short position in Ethereum, according to Onchain Lens. The MEGA trade has recorded an unrealized, or floating, loss of more than $840,000 over the last three days. The move highlights how leveraged trading (borrowing funds to amplify exposure) can quickly magnify losses when price action moves against a trader.

Terms & Concepts
  • Leverage: The use of borrowed funds to increase trading exposure. It can amplify both gains and losses relative to the trader’s initial capital.
  • Long position: A trade that profits if an asset’s price rises. Traders open longs when they expect upward price movement.
  • Floating loss: An unrealized loss on an open position. It reflects how much a trade is down on paper before it is closed.