Liquidation Price Calculator

How liquidation works

When losses eat through your margin, the exchange force-closes (liquidates) your position. Higher leverage means that danger line sits much closer to your entry.

• Long danger line ≈ entry × (1 − 1/leverage + maintenance margin).
• Short danger line ≈ entry × (1 + 1/leverage − maintenance margin).

At 10× a long is roughly 10% from that line; at 50× it's about 2%. This is why blindly following 125× signals is so dangerous — a tiny wick can end the trade.

A worked example

Take a long opened at $60,000 with 10× leverage and a 0.5% maintenance margin. Plug those in and the danger line sits near $54,300, about 9.5% below entry. A short at the same settings flips it to roughly $65,700 above.

Notice how little room 10× leaves once fees and funding nibble at the margin. Real exchanges also move the maintenance rate as your size grows, so treat this figure as a guide, not a promise, and give yourself a buffer.

For a plain warning on how fast these products can move, see the SEC's alert on crypto trading risk.

Run your intended entry through it before every leveraged order. If the danger line sits inside normal daily noise, the setting is too aggressive; lower the multiplier until there is breathing room. A trade that can ride out an ordinary swing is far easier to hold than one that dies on the first wick.