Use our Liquidation Price Calculator to determine the price at which your leveraged position would be automatically closed by your broker. This essential tool helps you manage risk and avoid unexpected liquidations in your trading strategy.
Liquidation Price Calculator
How It Works
The Liquidation Price Calculator helps you determine when your leveraged position would be automatically closed. Here's how to use it:
- Entry Price: Enter the price at which you opened your leveraged position.
- Leverage Ratio: Input the leverage multiplier you're using (e.g., 10 for 10x leverage).
- Calculate: Click the button to see your estimated liquidation price.
The calculator uses the formula: Liquidation Price = Entry Price × (1 - (1/Leverage)) for long positions.
Frequently Asked Questions (FAQs)
What is a liquidation price?
The liquidation price is the price at which your broker will automatically close your leveraged position if the market moves against you, to prevent further losses.
How accurate is this calculator?
This calculator provides a basic estimate. Actual liquidation prices may vary based on exchange rules, maintenance margin requirements, and funding rates.
Does this work for both long and short positions?
This calculator is configured for long positions. For short positions, the formula would be different (Entry Price × (1 + (1/Leverage))).
Why is knowing my liquidation price important?
Knowing your liquidation price helps you manage risk, set appropriate stop-loss orders, and avoid unexpected position closures.
Can I change the leverage after opening a position?
This depends on your broker. Some platforms allow adjusting leverage on open positions, which would change your liquidation price.