Calculate the exact price at which your leveraged position will be forcefully closed. Essential for managing risk on futures and margin trades.
Only the margin allocated to this specific position is at risk. If liquidated, you lose only the margin for that trade — your remaining wallet balance is safe. Best for limiting downside on individual trades.
Your entire available wallet balance is used as margin. This gives your position more room before liquidation, but if liquidated, you can lose your entire account balance. Best for hedged positions or when you're very confident in direction.
Higher leverage = closer liquidation. At 100x leverage, a mere 1% move against you triggers liquidation. At 10x, you have roughly 10% of breathing room. The relationship is nearly linear.
Always set a stop-loss ABOVE your liquidation price. Don't rely on liquidation as your exit strategy. Set stops at least 1-2% above (for longs) or below (for shorts) your liquidation price to account for slippage and wicks.
Funding rates eat into your margin. On perpetual futures, funding rates are charged every 8 hours. Over time, this reduces your effective margin and brings your liquidation price closer. Factor this in for longer holds.
Exchanges add fees to liquidation. Most exchanges charge a liquidation fee (0.5-1.5%) on top of the maintenance margin. Your actual liquidation price may be slightly worse than calculated here. Always check your exchange's specific liquidation engine.