Liquidation price
Liquidation price is the price at which the exchange force-closes your leveraged position because your collateral is no longer enough. The higher the leverage, the closer it is to your entry.
How it works
Liquidation price depends on entry price, leverage, maintenance margin rate, margin mode and fees. For an isolated long you can roughly estimate it as entry × (1 − 1/leverage + maintenance rate), and for a short as entry × (1 + 1/leverage − maintenance rate). The exact figure is shown in the exchange's position panel.
Liquidation is checked against the mark price, not the last trade. In cross mode the liquidation price depends on your whole balance and other positions, so it moves when you deposit or open new trades.
You can push the liquidation price away by adding margin or lowering leverage. But it is better to think the other way round: set your stop-loss from the chart first, then choose leverage so liquidation sits well beyond the stop.
Long BTC at $60,000, 10x, isolated margin, 0.5% maintenance rate. Liquidation price ≈ 60,000 × (1 − 0.1 + 0.005) = $54,300. For a short on the same terms ≈ 60,000 × (1 + 0.1 − 0.005) = $65,700. Fees move both prices slightly closer to entry.
The main mistake is using the liquidation price as your stop-loss. Liquidation takes almost all of your margin and often an extra fee. Set your own stop earlier, where the trade idea is proven wrong, and keep liquidation well beyond it.
Questions and answers
What is liquidation price in simple terms?
It is the price at which the exchange closes your leveraged position itself, because losses have nearly eaten your collateral.
How do I calculate liquidation price?
Roughly, for a long: entry × (1 − 1/leverage + maintenance margin rate). The exact value is shown in your open position on the exchange.
How can I move my liquidation price further away?
Add margin to the position, lower the leverage or reduce the size. In cross mode, depositing more also helps.
Related terms
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Updated: 2026-10-19