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Liquidation price is the level where a leveraged position is force-closed. Estimating it before you size a trade helps you avoid leverage that cannot survive normal noise.
Launch Liquidation Calculator →Purpose
Liquidation price is the level where a leveraged position is force-closed. Estimating it before you size a trade helps you avoid leverage that cannot survive normal noise.
When to use it
- Before opening a long or short with leverage
- When comparing leverage tiers and maintenance margin assumptions
- To see how far bankruptcy sits beyond the maintenance buffer
- When reviewing a liquidated trade after the fact
How to use it
- Choose long or short. Select the side that matches your planned position.
- Enter entry, leverage, and margin inputs. Use the same entry and leverage you will set on the exchange.
- Review liquidation and bankruptcy. Read the approximated liquidation price and bankruptcy level.
- Confirm on the venue calculator. Cross-check Binance, Bybit, or your venue’s official tool before risking capital.
Benefits
- Fast isolated-margin intuition without logging into an exchange
- Separates maintenance liquidation from theoretical bankruptcy
- Helps stress-test leverage before you click buy
- Pairs with position size and profit tools
Pitfalls to avoid
- Insurance funds, mark prices, and tiered MMR differ by venue
- Cross-margin and portfolio margin are not the same as isolated
- Funding payments can move effective equity over time
- Approximation only — never the sole risk check
- Max leverage is a product feature, not a target
Isolated-margin approximation used here
CryptonicTools uses a transparent isolated-margin style estimate: long ≈ entry × (1 − 1/leverage + MMR), short ≈ entry × (1 + 1/leverage − MMR), where MMR is maintenance margin rate. Bankruptcy is the theoretical zero-equity level if you ignore the maintenance buffer; venues usually liquidate earlier.
That formula is good for teaching and first-pass risk. It is not a byte-for-byte clone of any single exchange engine.
Why your exchange number will differ
Mark price, funding, insurance funds, and tiered maintenance rates all move the real liquidation line. A one-way move that “should” survive on a napkin math sheet can still liquidate if mark price spikes. Always simulate on the venue.
Combine this calculator with position size and risk/reward tools so notional size and stop distance match the leverage you chose. This is not financial advice.
When to use liquidation vs position size
Position size answers how large a position fits your dollar risk and stop. Liquidation answers how close forced exit sits at a chosen leverage. Do size first from risk; then check whether leverage puts liquidation inside normal noise.
Worked example: 10× long with ~0.5% MMR puts liquidation roughly near a ~9.5% adverse move on the isolated approximation — confirm on your venue before you trust the napkin.
Common mistakes
Using cross-margin assumptions in an isolated tool; ignoring funding over multi-day holds; setting stops beyond liquidation “because the chart looks fine.”
Purpose: survive volatility, not chase max leverage
The purpose of checking liquidation early is to pick leverage that can survive normal wicks. Max available leverage is a product feature, not a recommendation. Use CryptonicTools to make that conversation concrete before you sign a futures order.
Related links
Updated 2026-09-18. Educational only — not financial advice.