- What is a liquidation price?
- The price at which an exchange closes your leveraged position because your margin no longer covers the loss. You lose the margin you put into that position. With isolated margin, only that position's margin is at stake; with cross margin, the rest of your account balance is exposed too.
- How is the liquidation price calculated?
- For an isolated-margin long on a USDT-margined contract: entry × (1 − 1 ÷ leverage + maintenance margin). A 10x long from $100 with a 0.5% maintenance margin is liquidated at $100 × (1 − 0.1 + 0.005) = $90.50. For a short the signs flip: entry × (1 + 1 ÷ leverage − maintenance margin).
- Why does my exchange show a different number?
- Exchanges use tiered maintenance margins that rise with position size, base liquidation on a mark price rather than the last price, count fees and funding already paid, and treat cross margin differently. This calculator gives a clean estimate for comparing leverage levels; the exchange's own figure is the one that matters for a real position.
- How close is the liquidation price at high leverage?
- At 10x a 9.5% move against you liquidates the position, at 20x about 4.5%, at 50x about 1.5% and at 100x about 0.5%. Ordinary daily moves in crypto are often larger than that, which is why high leverage tends to end in liquidation.
- Should my stop-loss be before the liquidation price?
- Yes. A stop-loss only helps if the price reaches it first. If your stop is beyond the liquidation price, the exchange closes the position before it triggers. Enter your stop above and the calculator warns you when it is out of reach.
- What is the maintenance margin?
- The minimum share of the position's value your margin must cover to keep it open. Once losses push the remaining margin down to that floor, the position is liquidated, which is why liquidation comes a little before the whole margin is lost. It is typically a fraction of a percent for small positions and higher for large ones.