Liquidation Price Calculator
Find your exact liquidation price for leveraged and futures positions before you enter a trade.
Free — no signup, no ads, instant results
Inputs
Results
Liquidation Price
$45250.00
Distance to Liquidation
9.50%
Who Is This For?
Crypto and futures traders who need to know the exact price at which their leveraged position will be liquidated. Critical for anyone trading with leverage on exchanges like Binance, Bybit, or BitMEX.
Understanding Liquidation Price
When trading with leverage, your position can be automatically closed (liquidated) if the price moves too far against you. Knowing your liquidation price before entering a trade is essential for managing risk in futures and margin trading.
Higher leverage means your liquidation price is closer to your entry. For example, 10x leverage on a long position means roughly a 10% adverse move triggers liquidation, while 100x leverage leaves only about 1% of room.
Use the Position Size Calculator alongside this tool to ensure your position sizing keeps liquidation risk in check, and pair it with GrandAlgo indicators for precise entry and stop-loss placement. For more on how institutions target stop clusters, read about liquidity pools and stop loss clustering.
Liquidation Price Formula
For a long position: Liquidation Price = Entry Price × (1 - 1 / Leverage)
For a short position: Liquidation Price = Entry Price × (1 + 1 / Leverage)
Example: you go long BTC at $40,000 with 10x leverage. Liquidation = $40,000 × (1 - 1/10) = $36,000. A 10% drop wipes out your entire margin.
The higher your leverage, the closer your liquidation price sits to your entry. This leaves less room for error and makes stop-loss placement critical.
Leverage and Liquidation Reference
The relationship between leverage and liquidation distance is inverse. The formula is simple: Leverage × Max Adverse Move = 100%
At 2x leverage, you get liquidated after a 50% move against you. At 5x, it takes a 20% move. At 10x, just 10%. At 25x, 4%. At 50x, 2%. And at 100x leverage, a mere 1% adverse move liquidates your entire position.
In volatile markets like crypto, where 5-10% daily swings are common, leverage above 10x carries extreme liquidation risk. Even in forex, where daily moves are typically under 1%, 100x leverage puts you in danger from normal volatility.
Worked Example
Position: Long BTC at $40,000
Leverage: 10x
Margin: $4,000
Liquidation price: $40,000 × (1 - 1/10) = $36,000
Result: A 10% drop from entry triggers liquidation
Assumptions & Edge Cases
- Uses simplified liquidation formula — real exchanges may add maintenance margin, funding rates, and insurance fund deductions.
- Liquidation price may differ slightly from broker to broker.
- Does not account for partial liquidation.
Frequently Asked Questions
The liquidation price is the price level where your margin is fully consumed by unrealized losses, and the exchange forcibly closes your position. When trading with leverage, you're borrowing capital, and the exchange will liquidate you before losses exceed your deposited margin to protect themselves from bad debt.
Use lower leverage (5x or less for volatile assets), set stop losses well above your liquidation price, and never risk more than 1-2% of your total account on a single leveraged trade. Monitor your margin ratio and add margin if it drops below 50%. The safest approach is to size your position so that your stop loss — not your liquidation price — defines your maximum loss.
Leverage amplifies both profits and losses proportionally. 10x leverage turns a 5% price move into a 50% gain or loss on your margin. Your actual dollar P&L depends on position size, not leverage directly. Leverage determines how much margin you need to hold the position and where you get liquidated.