Trader's $7.66M Paper Loss Highlights Risks of Leveraged Trades in Fast-Moving Markets

A successful trader who had previously made nearly $9 million across 47 trades has now accumulated an unrealized loss of $7.66 million after taking a heavily leveraged short position in ZEC as the privacy coin continued its rally.

The trader, who boasts an impressive 89% win rate and had made over $1.9 million on a Bitcoin long and about $1.8 million on an Ethereum long before getting into trouble with ZEC, faces liquidation if ZEC reaches around $1,551.

The current position, a 12,285 ZEC short worth approximately $18.3 million, has the trader facing liquidation with no free margin available and an unrealized loss standing at $7.66 million. The trade was opened at an average price of $867, compared to the current mark price near $1,486.