CoinProfitTools
Crypto profit, fee & risk calculators

Liquidation Price Calculator

Calculate your futures liquidation price based on entry price, leverage, margin, and position type (Long or Short).

What Is a Liquidation Price?

The liquidation price is the price level at which your futures or margin position is automatically closed by the exchange to prevent further losses. When you trade with leverage, you only use a small amount of capital as margin, while borrowing the rest. If the market moves against your position and your margin is no longer sufficient, your position is liquidated.

Why Liquidation Happens in Futures Trading

Liquidation exists to protect both traders and exchanges from negative balances. Since you are borrowing funds to trade with leverage, the exchange must close your position before your losses exceed your available margin. This ensures that traders do not lose more than they deposited.

How the Liquidation Price Is Calculated

The liquidation price depends on your entry price, leverage, maintenance margin requirement, and whether your position is long or short. Higher leverage brings your liquidation price closer to your entry, increasing your risk.

How to Use the Liquidation Price Calculator

Using this tool is simple:

1. Enter your entry price 2. Choose your leverage 3. Select your position type (Long or Short) 4. Enter the maintenance margin percentage 5. Click on “Calculate Liquidation Price”

The calculator will instantly show your estimated liquidation price.

Why Every Futures Trader Must Know Their Liquidation Price

Many traders lose their accounts because they do not monitor liquidation risk. By knowing your liquidation price in advance, you can place stop-loss orders safely and control risk professionally.

How Leverage Affects Liquidation Risk

Higher leverage increases both profit potential and liquidation risk. For example, 5x leverage gives much more room for price movement than 50x leverage. This is why beginners should always use low leverage.

Liquidation vs Stop-Loss

A stop-loss allows you to exit a trade before liquidation happens, reducing emotional trading and protecting capital. Liquidation, on the other hand, is forced and often results in larger losses.

Final Thoughts

The Liquidation Price Calculator helps you trade with discipline, reduce emotional stress, and manage your crypto trading risk professionally.

What is a good leverage level for beginners?

For beginners, 3x to 5x leverage is considered relatively safe compared to higher leverage. Using lower leverage gives more room before liquidation and helps new traders survive market volatility.

Does liquidation mean I lose all my money?

Liquidation usually means you lose your margin for that trade. You do not lose your entire account unless you use all your balance as margin.

Can I avoid liquidation completely?

You cannot remove liquidation risk completely in leveraged trading, but you can reduce it by using low leverage, proper position sizing, and setting stop-losses.

Is liquidation the same on all exchanges?

No. Each exchange has slightly different maintenance margin requirements and liquidation rules, so your liquidation price may vary from platform to platform.

Is liquidation taxable?

In many countries, liquidation losses can sometimes be recorded as trading losses for tax purposes, but local tax laws vary widely. Always consult a crypto tax professional.