What is liquidation price in futures?
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The liquidation price is the estimated mark price at which your position is liquidated, meaning it is closed automatically because your margin no longer covers the maintenance margin the position needs. For a long it is below your entry price; for a short it is above.
Where do I see it?
Every open position shows Liq. Price in the Positions tab on the futures page. Before you open a trade, you can estimate it with the futures calculator.
What moves the liquidation price?
- Leverage. Higher leverage means less margin, so the liquidation price is closer to your entry.
- Margin mode. In isolated mode it depends on the position's own margin. In cross mode it also depends on your Futures wallet balance and on your other cross positions.
- Adding or removing margin (isolated) moves it further away or closer.
- Position size. A bigger position can fall into a higher tier with a higher maintenance margin rate.
- Funding fees and other losses reduce the margin balance over time, especially in cross mode.
Why does it use the mark price?
Liquidation is based on the mark price, not the last traded price. The mark price is based on the index price and the last price, which makes it harder for a short spike in one market to trigger liquidation. This is why a position can be liquidated even if the chart's last price did not quite touch your liquidation price. See mark price and index price.
What happens at liquidation?
When your margin ratio reaches 100%, the position is closed at market and its open orders on that pair are cancelled. In cross mode all your cross positions are closed. Your loss can never be more than your Futures wallet balance.
You get a warning notification when your margin ratio reaches 80%. Treat it as a signal to add margin, lower the position or close it.
How do I move my liquidation price further away?
- Use lower leverage.
- Add margin to an isolated position.
- Keep more USDT in your Futures wallet for cross positions.
- Reduce the position size.
Часто задаваемые вопросы
Is the liquidation price exact?
It is an estimate. It changes with your margin, your other cross positions and fees, so check it in the Positions tab.
Can I lose more than my balance?
No. Your loss can never be more than your Futures wallet balance.
Does a stop loss protect me from liquidation?
A stop loss above your liquidation price (for a long) closes the position first, so you choose your loss instead of being liquidated.