Leverage Trading Liquidation Price Calculator
When you open a leveraged futures position, the exchange will automatically close it the moment your losses equal your margin — that price is your liquidation price. This calculator applies the standard formula for isolated-margin positions: enter your entry price and leverage, pick long or short, and get the exact liquidation level in real time.
Liquidation price for a LONG = Entry price × (1 − 1 / Leverage). For a SHORT = Entry price × (1 + 1 / Leverage). Example: entry $60,000 at 10x long → liquidation at $54,000 (a 10% drop wipes the position). The higher the leverage, the closer the liquidation sits to your entry.
When to use this calculator
- Calculate your liquidation price before opening a futures position
- Stress-test position sizing at different leverage levels
- Understand how close liquidation sits to your entry at 5x, 10x, 20x, 50x
- Compare long vs short liquidation distances
- Teach margin mechanics to newer traders
Worked example: BTC at $60,000, 10× long
- Entry price = $60,000
- Leverage = 10×, position = Long
- Liquidation = $60,000 × (1 − 1/10) = $60,000 × 0.90 = $54,000
- A drop of just 10% ($6,000) wipes the full margin
How it works
2 min readHow liquidation price is calculated
For isolated-margin positions (most retail futures accounts), the formula is:
The logic: at 10× leverage you put up 1/10th of the position as margin. The moment that 1/10th (10%) is lost, you're liquidated.
> Note: Exchanges add a maintenance margin buffer (typically 0.5–1%) so actual liquidation happens slightly before these prices. Use this calculator to get the ballpark — always keep a safety buffer.
Bitcoin long liquidation table — entry $60,000
| Leverage | Liquidation Price | Move Required | Risk Level |
|---|---|---|---|
| 2× | $30,000 | −50% | Very low |
| 3× | $40,000 | −33.3% | Low |
| 5× | $48,000 | −20% | Moderate |
| 10× | $54,000 | −10% | High |
| 20× | $57,000 | −5% | Very high |
| 50× | $58,800 | −2% | Extreme |
| 100× | $59,400 | −1% | Casino-level |
Common leverage levels — how much can price move before you're liquidated?
| Leverage | % move before liquidation |
|---|---|
| 2× | 50% |
| 5× | 20% |
| 10× | 10% |
| 25× | 4% |
| 50× | 2% |
| 100× | 1% |
Risk principles every leveraged trader must know
Isolated vs cross margin
This calculator assumes isolated margin (most common for retail). In cross-margin mode, your entire account balance is used to avoid liquidation — your liquidation price may be lower (more room) but a single bad trade can wipe your whole account.
Frequently asked questions
What is a liquidation price in futures trading?
The liquidation price is the level at which the exchange automatically closes your position to prevent your loss from exceeding your deposited margin. For a long at 10× leverage from $60,000, that price is $54,000 — a 10% drop.
What is the formula to calculate liquidation price?
Long liquidation = Entry price × (1 − 1 / Leverage). Short liquidation = Entry price × (1 + 1 / Leverage). These assume isolated margin with no fees or maintenance margin buffer. Exchanges add ~0.5–1% maintenance margin, so real liquidation happens slightly earlier.
How close is the liquidation price at 10× leverage?
At 10× leverage, a move of just 10% against your position triggers liquidation. Long at $60,000 → liquidated at $54,000. Short at $60,000 → liquidated at $66,000. That 10% can happen in minutes during a volatile session.
What's the difference between a stop loss and a liquidation?
A stop loss is a voluntary exit you set in advance. Liquidation is forced by the exchange when your margin runs out. You should always set a stop loss above your liquidation price so you exit with some margin remaining rather than losing 100%.
What is maintenance margin and how does it affect liquidation?
Maintenance margin is a minimum balance (typically 0.5–1.5% of position value) that must be kept in your account. Liquidation triggers when your margin falls to the maintenance level — not zero. This means actual liquidation happens slightly before the theoretical price this calculator shows.
What are funding rates and how do they affect my position?
Perpetual futures charge a funding rate every 8 hours — the rate is paid between long and short holders depending on market direction. When you hold a leveraged long in a bullish market, you pay funding to short holders. At 10× leverage, annual funding costs can exceed 20% of your initial margin.
What leverage is safe for a beginner?
Start at 2× or 3×. At 2×, a 50% price move is required to liquidate you — giving time to react. Most professional risk managers cap leverage at 3–5× even when highly confident in a trade. Avoid 20× or higher until you have deep experience and strict protocols.
What is isolated margin vs cross margin?
Isolated margin caps your loss at the amount assigned to that specific trade — if liquidated, only that portion is lost. Cross margin uses your entire account balance, which lowers your liquidation risk for that position but means one bad trade can drain your whole account.
What happens if my position gets liquidated?
You lose your entire margin for that position. The exchange sells (or buys) your position at the market price to close it. If market slippage is extreme, the loss can exceed your margin — some exchanges have insurance funds to cover this gap, but it's not guaranteed.