Futures Liquidation Price Calculator

What the liquidation price is

When you open a leveraged futures or perpetual position with isolated margin, the margin you post is the most you can lose on that position. As the price moves against you, your margin balance falls. Exchanges require the position to keep a minimum maintenance margin, a small percentage of the position value. When the remaining margin drops to that level, the exchange's liquidation engine closes the position, and the price at which this happens is the liquidation price. Higher leverage means less margin per unit of position, so the liquidation price sits closer to your entry.

Formula used

With entry price E, leverage L and maintenance margin rate M (charged on the position value at the liquidation price), the margin is E ÷ L per coin. Solving margin + profit or loss = maintenance margin gives:

• Long: liquidation price = E × (1 − 1/L) ÷ (1 − M)
• Short: liquidation price = E × (1 + 1/L) ÷ (1 + M)

Example: a long at 100 with 10x leverage and a 0.5% maintenance rate liquidates at about 100 × 0.9 ÷ 0.995 = 90.45, a fall of about 9.55%. The same short liquidates at about 100 × 1.1 ÷ 1.005 = 109.45. At 1x a long cannot be liquidated (the price would have to reach zero); if the maintenance rate is equal to or higher than 1/L, a position would be liquidated straight away.

Why your exchange may show a different number

• Formulas vary by exchange. Some charge maintenance margin on the entry value rather than the current value, use tiered rates that rise with position size, or subtract a maintenance amount. The result here is an estimate only.
• Fees and funding reduce your margin over time and move the liquidation price closer; this calculator ignores them.
• Mark price. Most venues trigger liquidation on a mark or index price, not the last traded price, so a brief spike on one exchange may or may not liquidate you.
• Cross margin uses your whole account balance as collateral, so the liquidation price depends on other positions and free balance. This calculator covers isolated margin only.
• Fast markets can gap past the liquidation price, and some exchanges charge a liquidation fee, so the loss can equal the full margin.

A stop-loss set well before the liquidation price, and a position sized with the position size calculator, keeps a loss to a level you chose. You can practise with virtual money in the paper trading simulator. Background: futures, spot and CFDs, risk management basics and our comparison Which DEX is really decentralized?