Crypto Liquidation Price Calculator
Liquidation Price FAQ
What is liquidation in crypto?
Liquidation happens when your collateral is insufficient to keep your leveraged position open, and the exchange closes it automatically.
Does leverage affect liquidation price?
Yes. The higher the leverage, the closer your liquidation price will be to your entry price.
What is maintenance margin?
It’s the minimum margin required to keep a position open. If your account falls below this, liquidation occurs.
Can liquidation be avoided?
Yes, by using stop-loss orders, lower leverage, and proper risk management.
Do all exchanges calculate liquidation the same?
Not exactly. Exchanges may use slightly different formulas depending on fees and margin rules.
Why is liquidation price important?
Knowing your liquidation price allows you to manage your trades safely and avoid losing your entire margin.
What is Liquidation Price in Crypto?
In crypto futures trading, the liquidation price is the price level at which your margin balance is no longer sufficient to maintain your open leveraged position. At this point, the exchange will automatically close your trade to prevent further losses.
Liquidation occurs when your account equity falls below the required maintenance margin. Factors like entry price, leverage, collateral, and whether the position is long or short all impact the liquidation level.
Using a liquidation price calculator helps traders manage risk and avoid being liquidated too early. It’s especially important in high-leverage trading (20x, 50x, 100x), where even small price swings can result in liquidation.