Two traders open the same BTC position at the same moment. They use the same entry price, leverage, and direction. One exchange shows a liquidation price 1.8% closer to entry than the other. Neither exchange made an error. Different exchanges…
The liquidation price is the price at which a crypto futures exchange force-closes a leveraged position. It is calculated before the trade opens, using four variables: entry price, leverage, maintenance margin rate, and position size. When mark price reaches that…
The liquidation price is the exact price level where your broker or exchange will automatically close your position to prevent further losses. In other words, it’s the point where your margin can no longer cover the risk. Liquidation mechanics take…
Liquidation is the forced closure of a leveraged position when your account equity drops below the maintenance margin threshold. At 1:10 leverage, a 10% price move against you triggers it. At 1:25, just 4%. These are not warnings. They are…