Your liquidation price is the estimated market price at which your position may be automatically closed if the market continues moving against you.
Knowing your liquidation price is an important part of managing risk.
How Is It Determined?
Your liquidation price depends on several factors, including:
Your entry price.
Position size.
Leverage.
Margin allocated to the position.
Maintenance margin requirements.
Changing any of these factors can affect your liquidation price.
Why Is It Important?
Your liquidation price helps you understand how much the market can move against your position before liquidation may occur.
Higher leverage generally brings the liquidation price closer to your entry price, while lower leverage provides more room for market fluctuations.
Can My Liquidation Price Change?
Yes.
Depending on your position and any changes made to its margin or size, your estimated liquidation price may change over time.
Frequently Asked Questions
Is the liquidation price guaranteed?
No.
It is an estimate based on current market conditions and your position details.
Where can I see my liquidation price?
Your estimated liquidation price is displayed in your position details while your trade remains open.