Liquidation Price Calculator
$57,300.00
Distance to Liquidation: 4.5%
How Liquidation Works in Crypto Futures
Liquidation occurs when a trader's margin account balance falls below the required maintenance margin threshold. When this threshold is hit, the exchange automatically closes the position at the market price to prevent the account balance from sliding into negative values.
Formula Used
- Long Positions:
Liquidation Price = Entry Price × (1 - (1 / Leverage) + Maintenance Margin Rate) - Short Positions:
Liquidation Price = Entry Price × (1 + (1 / Leverage) - Maintenance Margin Rate)
The maintenance margin rate is typically determined by the size of your position and the rules of the specific exchange (often default settings range between 0.5% and 1%).