Leverage amplifies gains — and shrinks the distance between your entry and forced closure. Enter your position below to estimate the price at which the exchange would liquidate it.
How it's calculated: effective margin rate m = margin ÷ notional (isolated: m = 1 ÷ leverage; cross: m = (margin + extra margin) ÷ notional). Long liquidation = entry × (1 − m + MMR) · Short liquidation = entry × (1 + m − MMR).
Educational estimate only. Real liquidation prices use the exchange's mark price, tiered maintenance margins, and fees/funding — always confirm on the exchange's own calculator. MMR varies by exchange and position size (0.5% is a common entry-tier value).
How the liquidation price works
When you open a leveraged position you post initial margin — your own money backing the trade. If the market moves against you and your remaining margin falls to the maintenance margin level, the exchange closes the position automatically.
The calculator decomposes it like this:
- Effective margin rate (m) — how much margin backs each dollar of position. With isolated margin it’s simply
1 ÷ leverage(10× leverage → 10%). With cross margin it’s(initial margin + extra available margin) ÷ position value, because more of your wallet is backing the trade. - Maintenance margin rate (MMR) — the minimum margin the exchange requires to keep the position open. It varies by exchange and grows with position size; 0.5% is a common entry-tier figure.
- Long liquidation = entry × (1 − m + MMR) — a long can fall roughly your margin rate minus MMR before it’s closed.
- Short liquidation = entry × (1 + m − MMR) — a short can rise by the same buffer.
Because cross margin counts your extra balance, it pushes the estimate further from entry — but one bad position can then drain the whole account, which is exactly the risk isolated margin exists to contain.
Tips for using it well
- Keep leverage low. At 50×, an isolated long liquidates on roughly a 1.5–2% adverse move — inside normal crypto volatility.
- Treat the result as a boundary, not a stop. Funding, fees and mark-price differences move the real level closer. Plan exits with the position size calculator first, then check that even your planned stop is well inside the liquidation bound.
- Check the exchange’s own calculator before entering a real trade — tiered maintenance margins differ per venue and contract.
- Size down instead of widening the margin: if the liquidation distance feels uncomfortably close, the position is too big for the stop it needs.
Frequently asked questions
What is a liquidation price?
The price at which the exchange force-closes a leveraged position because your margin can no longer cover the unrealized loss. It is computed from your margin and the position’s maintenance margin requirement, using the exchange’s mark price — not the last traded price.
Why does cross margin move the liquidation price further away?
In cross mode the exchange can draw on your whole available balance as collateral, so the effective margin behind the position is larger and the price can move further before the margin is exhausted. The trade-off is that a single bad position can drain the entire account.
Why is my exchange showing a different liquidation price?
Real exchanges use their own mark price, tiered maintenance margins that rise with position size, and fees or funding that erode margin over time. This calculator shows the standard formula estimate — always confirm the figure on the exchange’s own liquidation calculator before trading.
Can a trade be liquidated even before this price?
Yes. Funding payments, fees, and margin calls can push the real liquidation point closer to your entry than this estimate. The number here is best treated as a worst-case boundary, not a safe stop level.
This tool is for education only and is not financial advice. Trading involves substantial risk of loss.