Calculate Liquidation Price

Position Type

Margin Mode

$
10x
$

Liquidation Analysis

Liquidation Price $45,000.00
Distance to Liquidation 10.00%
Initial Margin $1,000.00
Margin Ratio 10.00%
Bankruptcy Price $44,500.00

Risk Level

Liquidation High Risk Safe Zone
Pro Tip: Always set stop losses above your liquidation price. We recommend keeping at least 20% buffer between your stop loss and liquidation price to account for volatility and wicks.

Understanding Liquidations

What is Liquidation?

Liquidation occurs when your margin balance falls below the maintenance margin requirement. The exchange automatically closes your position to prevent further losses. This happens when:

  • Price moves against your position (down for longs, up for shorts)
  • Your losses exceed your initial margin
  • Your margin ratio drops below the maintenance requirement

Exchange-Specific Rules

Binance Liquidation
Binance uses a tiered maintenance margin system. Higher positions require higher maintenance margins. Initial margin: 1/leverage. Maintenance margin varies from 0.5% to 5% based on position size.
Bybit Liquidation
Bybit uses a fair price marking system to avoid unnecessary liquidations from market manipulation. Maintenance margin is typically 0.5% for BTC/ETH and 1% for altcoins.
BitMEX Liquidation
BitMEX pioneered the liquidation engine with partial liquidations. Uses a more complex system with auto-deleveraging and insurance fund to handle liquidations.

How to Avoid Liquidation

1. Use Lower Leverage

Higher leverage = higher risk. Start with 2-5x leverage until you're consistently profitable.

2. Set Stop Losses

Always set stop losses well above your liquidation price. A 5-10% buffer is recommended.

3. Monitor Margin Ratio

Keep your margin ratio above 5%. Add margin or reduce position size when it drops below this.

4. Use Isolated Margin

Isolated margin limits your risk to the initial margin. Cross margin can liquidate your entire account.

Frequently Asked Questions

What's the difference between liquidation price and bankruptcy price?
Liquidation price is where your position gets closed. Bankruptcy price is where your losses equal your entire margin. The exchange closes at liquidation price to ensure they can cover the bankruptcy price.
Why do different exchanges have different liquidation prices?
Each exchange has different maintenance margin requirements, fee structures, and liquidation engines. Some use mark price, others use last price. Always check your specific exchange's rules.
Can I get liquidated even with a stop loss?
Yes, if the market gaps past your stop loss during extreme volatility. This is why it's crucial to use appropriate leverage and keep your stop loss well above liquidation price.
What happens to my funds when I get liquidated?
You lose your entire initial margin for that position. In isolated margin, only that position's margin is lost. In cross margin, your entire account balance is at risk.

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