Perpetual Futures Liquidation Calculator
Know your liquidation price before you enter a trade. This calculator shows exactly how far price can move against you before your position gets forcibly closed — accounting for your leverage and the exchange's maintenance margin requirements.
Higher leverage doesn't mean higher risk — it means a closer liquidation price. At 10x, you have ~9.5% room. At 50x, only ~2%. Use this to set stops well before liquidation hits.
Your position entry price
Position leverage multiplier
Exchange maintenance margin requirement
Liquidation Analysis
Liquidation Price
$45250.00
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Calculation Methodology
Liquidation occurs when your margin balance falls below the maintenance margin requirement. The exchange automatically closes your position to prevent negative equity. Here's how it's calculated:
Key Insight: Higher leverage means less room for adverse price movement. At 10x, you have ~9.5% buffer. At 50x, only ~2%. This is why proper position sizing is critical — you want to set stops well before liquidation, not rely on liquidation as your stop.
Learn more about perpetual contracts:
Perps basics guideExample Scenario
Setup: Long position at $50,000, 10x leverage, 0.5% maintenance margin
What this means: If price drops to $45,250, your margin can no longer cover losses and the exchange liquidates your position. You lose ~9.5% of your margin.
Comparison: At 50x leverage, liquidation would be at ~$49,000 (only 2% away). This is why high leverage requires very tight risk management.
Common Mistakes & Warnings
- ⚠Ignoring maintenance margin: Exchanges require maintenance margin (typically 0.5-1%). This reduces your effective buffer. Always include it in calculations.
- ⚠Funding costs reduce margin: Funding payments come out of your margin. Over time, this can push you closer to liquidation even without price movement.
- ⚠Liquidation slippage: When liquidated, you may get filled at a worse price than the calculated liquidation price. This can increase losses by 0.1-0.5%.
- ⚠Using liquidation as stop: Never rely on liquidation as your stop loss. Set manual stops at 50-70% of liquidation distance for safety.
- ⚠Exchange differences: Different exchanges use slightly different formulas. Always verify with your exchange's liquidation calculator.
Example Scenarios
Try these realistic scenarios to understand liquidation risk at different leverage levels.
Scenario 1: Conservative Leverage (5x)
Low leverage provides more buffer before liquidation. Safer for beginners and long-term holds.
Step-by-Step Calculation:
- Max loss %: (1 ÷ 5) - 0.005 = 19.5%
- Liquidation price: $50,000 × (1 - 0.195) = $40,250
- Distance from entry: ($50,000 - $40,250) ÷ $50,000 = 19.5%
- Adverse move allowed: 19.5%
What this means: At 5x leverage, price can drop 19.5% before liquidation. This provides significant buffer for normal market volatility. You'd need a major crash to get liquidated.
Scenario 2: Moderate Leverage (10x)
Standard leverage for most traders. Good balance between capital efficiency and safety.
Step-by-Step Calculation:
- Max loss %: (1 ÷ 10) - 0.005 = 9.5%
- Liquidation price: $50,000 × (1 - 0.095) = $45,250
- Distance from entry: ($50,000 - $45,250) ÷ $50,000 = 9.5%
- Adverse move allowed: 9.5%
What this means: At 10x leverage, price can drop 9.5% before liquidation. This is the standard professional leverage - enough buffer for normal volatility but requires proper risk management.
Scenario 3: High Leverage (50x)
Very high leverage with minimal buffer. Requires precise entries and tight stops. ⚠️ Extreme risk
Step-by-Step Calculation:
- Max loss %: (1 ÷ 50) - 0.005 = 1.5%
- Liquidation price: $50,000 × (1 - 0.015) = $49,250
- Distance from entry: ($50,000 - $49,250) ÷ $50,000 = 1.5%
- Adverse move allowed: 1.5%
What this means: At 50x leverage, price can only drop 1.5% before liquidation. This is extremely risky - even small price movements can liquidate you. Normal market volatility (2-3%) will liquidate you quickly.
Edge Case Warning: With only 1.5% buffer, funding costs, slippage, or even normal bid-ask spreads can push you closer to liquidation. A 0.1% funding payment reduces your buffer to 1.4%. This is unsustainable for any meaningful hold time.
What If Variations
Explore how changing parameters affects liquidation distance:
What if I'm short instead of long?
Using Scenario 2: Liquidation price becomes $54,750 (price must rise 9.5% to liquidate). Formula: $50,000 × (1 + 0.095) = $54,750. Same distance, opposite direction.
What if maintenance margin is 1% instead of 0.5%?
Using Scenario 2: Max loss drops from 9.5% to 9%, liquidation price becomes $45,500. Higher maintenance margin reduces your buffer slightly.
What if funding costs reduce my margin by 0.5%?
Using Scenario 2: Effective buffer drops from 9.5% to 9%. After 1 week of funding, your liquidation price moves closer to entry. Always account for funding over time.
Frequently Asked Questions
What triggers liquidation?
When your unrealized losses approach your initial margin minus maintenance requirements, the exchange automatically closes your position to prevent negative balance.
Is higher leverage always bad?
Not inherently — leverage is a tool. The problem is when traders use high leverage AND size their positions too large. With proper sizing, leverage just affects capital efficiency.
Why does my exchange show a different number?
Exchanges use slightly different formulas and may include fees, funding, and insurance fund contributions. This calculator gives an approximation — always verify with your exchange.
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