Liquidation Calculator: How Far the Price Can Move Before Your Position Is Closed
Leverage multiplies not only profit but also loss. The calculator shows roughly at what level the exchange will forcibly close your position — and how small a move it takes.
Calculated from your inputs. This is not a forecast, not a promise of returns and not investment advice. Real trading results can be anything, including a loss.
What the calculation shows
At 10x leverage, the position gets closed when the price moves roughly 9–10% against you. At 20x — about 5%, at 50x — about 2%. For crypto, that’s ordinary daily noise. The formula is simplified: always check the exact liquidation price in your exchange’s interface.
How to avoid it
- Stop-loss before liquidation. Your stop should close the trade, not the exchange.
- Low leverage or none at all. Beginners should stick to spot only.
- Size the position by risk, not by leverage — see the position size calculator.
More on leverage in the article leverage explained simply and the lesson margin and short selling.
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- The higher the leverage, the closer the liquidation.
- Stop-loss always comes before liquidation.
- The calculation is approximate — check with your exchange.
FAQ
How is the liquidation price calculated?
Simplified: for a long on isolated margin, liquidation happens when the price drops by roughly (1 ÷ leverage) minus the maintenance margin. Each exchange has its own exact formula, which also accounts for fees.
Why does the calculator show an approximate price?
Exchanges use a mark price, different maintenance margin rates and also account for fees. Rely on the liquidation price shown in your exchange’s interface.
How do I avoid liquidation?
Place your stop-loss well before the liquidation level, use low leverage and size your position by risk, not by leverage.
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