Miscalculating Bitcoin, South Korean Crypto Trader Loses $1 Million!


 "It's really unfortunate for this trader, when you sell BTC it goes up but when you buy it the price goes down."

A South Korean trader named Sotto lost $1 million in Bitcoin (BTC) futures trading after selling the digital asset at around the $21,000 level but the sudden spike in Bitcoin prices made him bear the loss.

However, Sotto was found to have continued to add to his selling position even though the price of BTC continued to soar until he suffered a large amount of losses.

In context, crypto futures are derivative products that allow traders to borrow a digital asset from an exchange in the expectation that it will go up or down.

Liquidation will occur when the exchange closes the sell or buy position by force following the trader losing part or all of the margin amount.

Returning to Sotto's situation, he who expected BTC to go down was the reason why he opened margin by buying with leverage but unfortunately his prediction was simply wrong as the price of the digital asset continued to soar.

Even so, this is not the first time that Sotto has previously lost a large amount of funds when his expectations were always wrong, plus he often made trades with high leverage.

It is well known that leverage allows clients to borrow funds from brokers and allows them to trade with larger order sizes than usual, but it should be noted that the losses can be as large as the gains.

Earlier in April 2022, Sotto lost $10 million after opening a position to sell BTC while its price was trading at $41,000 but once again his prediction was off the charts as the price of the digital asset continued to plummet.