About this estimate
This uses the standard isolated-margin approximation. Real exchanges apply tiered maintenance margins, fees and funding, so the actual liquidation price can be slightly closer to your entry. Keep a comfortable gap between your stop and liquidation — read leverage and liquidation explained.
Frequently asked questions
How is liquidation price calculated?
For an isolated long, approximately entry × (1 − 1/leverage + maintenance margin rate). For a short, entry × (1 + 1/leverage − maintenance margin rate). Exchanges add fees and tiers, so treat it as an estimate.
Does lower leverage reduce liquidation risk?
Yes. Lower leverage moves the liquidation price further from your entry, giving the stop loss room to work.
