What is liquidation in crypto futures?

When your leveraged position loses enough value that your margin cannot cover the loss, the exchange automatically closes your position. This is called liquidation.

How do I avoid liquidation?

Use lower leverage, set a stop loss well before the liquidation price, and never use your full balance as margin.

What is maintenance margin?

Maintenance margin is the minimum equity required to keep a position open. On Binance futures it is typically 0.5% for BTC and ETH.

Crypto Liquidation Calculator – Free Liquidation Price Calculator

Crypto Liquidation Explained: How to Calculate & Avoid It

Liquidation is every leveraged trader's nightmare — your position is forcibly closed and you lose your margin. It happens when the price moves against you by (100 ÷ Leverage)%. At 10x leverage that's just a 10% adverse move. At 20x, only 5%.

The best way to avoid liquidation is a stop-loss order set well above your liquidation price. For example, if you're long BTC at $60,000 with 10x leverage and liquidation at $54,000 — set your stop at $56,000. This limits your loss to a defined amount instead of a full wipeout.

Never add to a losing position hoping to avoid liquidation — this is one of the most dangerous behaviors in crypto trading. Instead, pre-calculate your liquidation price with this tool before entering any trade.

About the Crypto Liquidation Calculator

A crypto liquidation calculator tells you the exact price at which your leveraged position gets force-closed by the exchange, based on your entry price, leverage, and margin type. Knowing this number before entering a trade is one of the most important risk checks a leveraged trader can do, and yet it's often skipped.

Why This Tool Exists

Getting liquidated feels like it comes out of nowhere, but it's actually predictable math based on your leverage and entry price. This tool exists so you know your exact liquidation price before opening a position, rather than finding out the hard way when the exchange closes it automatically.

How to Use It

Step 1. Select Long or Short position direction.
Step 2. Enter your entry price and leverage multiplier.
Step 3. Choose your margin mode — isolated or cross, if applicable.
Step 4. Click Calculate to see your estimated liquidation price.

Key Features & Benefits

Calculates liquidation price for both long and short positions
Accounts for leverage multiplier directly in the formula
Simple inputs — no need to manually work out margin ratios
Helps set safer stop-loss levels above your liquidation point
Useful across most major exchanges' leverage structures
Free, fast, no account connection required

How It Works

Roughly speaking, liquidation price moves further from your entry price as leverage decreases, and closer to it as leverage increases — at 10x leverage, a roughly 10% adverse move liquidates you; at 50x, it only takes about 2%. For a long position entered at $50,000 with 10x leverage, liquidation typically sits around $45,000, meaning a 10% drop wipes out your margin. Exact numbers vary slightly by exchange due to fees and maintenance margin requirements.

Frequently Asked Questions

What is liquidation in crypto trading?

Liquidation happens when your losses consume your entire margin, and the exchange automatically closes your position to prevent further loss beyond what you deposited.

How is liquidation price calculated?

It's based on your entry price, leverage, and margin mode — roughly, higher leverage means liquidation price is closer to your entry price.

Does margin mode affect liquidation price?

Yes, isolated margin only risks the margin allocated to that specific position, while cross margin uses your full account balance as a buffer, which can shift the liquidation price.

Can I avoid liquidation once I'm close to it?

Yes, adding more margin to the position or reducing leverage before the price gets close can push your liquidation price further away.

Why is my actual liquidation price slightly different from this estimate?

Exchanges add maintenance margin requirements and fees that create small variations from the theoretical calculation — always check your exchange's exact liquidation price display too.

Liquidation Price Calculator