What is a Liquidation Price?

A liquidation price is the price level at which your trading position will automatically close because your margin balance is no longer sufficient to keep it open.
On leveraged crypto exchanges, if the market moves against your trade and your account balance falls below the maintenance margin requirement, your position gets liquidated.

Example:

• You open a $10,000 long BTC/USDT trade with 10x leverage.

• You only need $1,000 as margin.

• If the price drops close to your liquidation price, your $1,000 margin can be wiped out, and the exchange will close your trade automatically.

Why is the Liquidation Price Important?

• Prevents unexpected losses from leverage trading.

• Helps you set stop-loss levels before liquidation.

• Allows you to choose safest leverage settings.

• Crucial for both isolated margin and cross margin traders.

How Does Our Liquidation Price Calculator Work?

Our calculator takes into account:

• Entry Price (where you open the trade)

• Position Size (value of your trade)

• Leverage (e.g., 5x, 10x, 20x)

• Margin Type (isolated or cross)

• Account Balance (for cross margin only)

 Simply enter your values, and the calculator instantly shows the exact liquidation price of your trade.

Formula Behind the Calculation

The simplified formula for liquidation price is:

For Long Positions:
Liquidation Price = Entry Price × (1 – (Margin – Maintenance Margin) ÷ Position Size)

For Short Positions:
Liquidation Price = Entry Price × (1 + (Margin – Maintenance Margin) ÷ Position Size)

(Our calculator handles these formulas automatically for you.)

Benefits of Using Our Liquidation Price Calculator

• Free and easy to use.

• Works for any cryptocurrency futures pair.

• Supports cross margin & isolated margin.

• Helps reduce risk by showing your liquidation risk before entering a trade.

Frequently Asked Questions (FAQ)

Q1. Can liquidation be avoided?
Yes. By using stop-loss orders, lowering leverage, and adding more margin balance, you can avoid liquidation.

Q2. Does liquidation mean I lose all my funds?
Not always. In isolated margin, you only lose the margin allocated to that trade. In cross margin, liquidation can drain your entire balance.

Q3. Is this calculator accurate for Binance, Bybit, and other exchanges?
Yes. The formula used in this calculator is compatible with all major crypto derivatives exchanges.

Q4. What is the safest leverage for beginners?
Most experts recommend keeping leverage low (2x–5x) to reduce liquidation risks.

Start Trading Smarter

Leverage trading can be profitable but comes with risks. Our Liquidation Price Calculator is designed to help traders stay safe, manage positions wisely, and build better risk management strategies.

Try it now above and know your liquidation level before placing any trade.