BullWhat is liquidation?
When the loss on a leveraged position eats almost all of its margin, the exchange closes the position for you. That forced close is liquidation. The price where it happens depends mostly on your leverage: the higher the leverage, the closer liquidation sits to your entry.
How to use it
- Choose Long or Short.
- Enter your entry price and leverage.
- Keep the maintenance margin rate at 0.4% unless your exchange shows a different rate for your coin and position size.
Formula
MMR is the maintenance margin rate, the small part of the position the exchange requires you to keep. Large positions sit in higher tiers with a higher rate.
Example
A long at 60,000 with 10x leverage and 0.4% MMR: 60,000 x (1 - 0.1 + 0.004) = 54,240, which is 9.6% below the entry. The same short would be liquidated at 60,000 x (1 + 0.1 - 0.004) = 65,760.
| Leverage | Long liquidation (entry 60,000) | Distance |
|---|---|---|
| 5x | 48,240 | 19.6% |
| 10x | 54,240 | 9.6% |
| 20x | 57,240 | 4.6% |
| 50x | 59,040 | 1.6% |
| 100x | 59,640 | 0.6% |
Isolated vs cross margin
This calculator is for isolated margin, where only the margin of this position is at risk. In cross margin, your whole futures balance backs the position, so liquidation is further away but you can lose much more than the margin of one trade.
How to stay safe
- Your stop loss should always be hit before your liquidation price.
- Use the leverage calculator to find the highest leverage that still keeps liquidation beyond your stop.
Frequently asked questions
Why is my exchange showing a slightly different liquidation price?
Exchanges also include fees, funding, unrealized profit on other positions (in cross mode) and tiered maintenance margin. This tool gives a close estimate for isolated positions.
What maintenance margin rate should I use?
For small positions on major coins it is often around 0.4% to 0.5%. Check the leverage and margin table on your exchange for the exact tier.
Can a position at 1x leverage be liquidated?
A long at 1x is only liquidated if the price falls close to zero. A short at 1x can be liquidated if the price roughly doubles.
Results are estimates for education only and are not financial advice. Always check the numbers on your exchange before you trade.
Isolated vs Cross Margin: Which One Protects Your Account?
The difference between isolated and cross margin in crypto futures, how each affects your liquidation price, and when traders use each one.