LIQUIDATION PRICE
$0.00
Binance · Isolated · 10× LONG
0% from entry
Initial Margin
—
Margin used
Maint. Margin
—
Min required
Safe Distance
—
Entry → Liq.
% Price Move
—
To reach liq.
📍 Price Safety Zone Visualization
Liq. —
Entry —
Target —
🚨
Full Breakdown
Exchange—
Direction—
Margin Type—
Entry Price—
Leverage—
Position Size—
Initial Margin—
MMR Rate—
Maintenance Margin $—
⚡ Liquidation Price
—
💡 HOW TO AVOID LIQUIDATION
→Always set a Stop Loss well above your liquidation price to exit safely before forced closure.
→Use lower leverage — 5x or less for beginners. Lower leverage = liq. price is farther from entry.
→Never risk more than 1–2% of your account balance on any single trade.
→In Isolated margin, you can add more margin to push your liquidation price further away.
→Simplified Cross Estimate uses your full wallet — safer from small moves but risks entire balance.
→Always use this calculator BEFORE entering a futures trade to know your exact risk.
Frequently Asked Questions
What is liquidation price in crypto futures?▼
Liquidation price is the exact price level at which your futures position is automatically and forcefully closed by the exchange. This happens when your margin balance drops below the maintenance margin requirement. At liquidation, you lose your entire initial margin for that position. This is why understanding your liquidation price before entering any trade is absolutely critical.
How does Binance calculate liquidation price?▼
Binance uses the following formulas for Isolated Margin:
LONG: Liq. Price = Entry Price × (1 − 1/Leverage + MMR)
SHORT: Liq. Price = Entry Price × (1 + 1/Leverage − MMR)
Where MMR = 0.5% (0.005) for most pairs. At 10x leverage LONG, $67,000 entry: Liq = $67,000 × 0.905 = $60,635.
What is the difference between Isolated and Cross margin?▼
Isolated Margin: Only your allocated margin is at risk. If liquidated, you lose only that margin — your wallet is safe.
Simplified Cross Estimate: Your entire wallet acts as margin, giving a farther estimated liquidation price. However, a bad trade can drain your full account. Our Cross result is a simplified estimate — verify on your exchange before trading.
How to avoid liquidation on Bybit, OKX, Bitget and BitMEX?▼
The most important steps: (1) Use this calculator before every trade. (2) Set stop loss at least 2–3% above your liquidation price. (3) Use 5x leverage or less as a beginner. (4) Only enter if liquidation price is 15–20%+ from current market price. (5) Never allocate more than 10–20% of your account to a single futures position.
Is 10x leverage safe for crypto futures trading?▼
At 10x leverage, your liquidation price is approximately 9.5% away from entry. Crypto regularly moves 10%+ in hours. For beginners, 2x–5x is much safer. Professionals use 3x–10x with strict stop losses always in place.
What is Maintenance Margin Rate (MMR) on each exchange?▼
MMR is the minimum margin ratio needed to keep your position open. Liquidation triggers when your margin falls below it:
• Binance: 0.5% for most pairs
• Bybit: 0.5% for USDT perpetuals
• OKX: 0.4% for most pairs
• Bitget: 0.5% for USDT perpetuals
• BitMEX: 0.5% for XBTUSD and most contracts
How Liquidation Works in Crypto Futures
When you open a futures position on exchanges like Binance, Bybit, OKX, Bitget, or BitMEX, you are trading with borrowed capital through leverage. You control a position much larger than your actual margin. In return, the exchange requires you to maintain a minimum balance — called the maintenance margin — to keep the position open.
If the market moves against you and your margin balance falls below this maintenance margin threshold, the exchange automatically closes your position. This forced closure is called liquidation. The price at which this happens is your liquidation price. Understanding it before every trade is essential risk management — not optional.
The higher the leverage, the closer your liquidation price is to your entry. At 100x leverage, a mere 1% adverse move can wipe out your entire position. This is why professional traders rarely exceed 10x–20x leverage and always pair every position with a stop loss placed safely above the liquidation level.
How Binance Calculates Liquidation Price
Binance uses a straightforward mathematical formula for USDM Futures (USDT-margined contracts). The formula depends on your direction — LONG or SHORT — and your maintenance margin rate (MMR), which is 0.5% for most pairs.
LONG Isolated Margin:
Liquidation Price = Entry Price × (1 − 1/Leverage + MMR)
SHORT Isolated Margin:
Liquidation Price = Entry Price × (1 + 1/Leverage − MMR)
Example — LONG at $67,000 with 10x leverage:
Liq. Price = $67,000 × (1 − 0.1 + 0.005) = $67,000 × 0.905 = $60,635
Actual liquidation prices on Binance may vary slightly based on your position tier, unrealised PnL, funding rates, and margin mode. Always verify on the Binance platform — this calculator provides a close approximation based on the standard formula used for most retail positions.
Bybit, OKX, Bitget, and BitMEX use very similar formulas. OKX uses a slightly lower MMR of 0.4%, while the others use 0.5% for standard positions.
Isolated vs Simplified Cross Margin Explained
🔒 Isolated Margin
Only the margin you allocate to a specific position is at risk. If liquidated, you lose only that margin — your remaining wallet balance is completely safe. Liquidation price is fixed and predictable. Best for beginners and disciplined risk management.
🔀 Simplified Cross Estimate
Your entire wallet balance acts as collateral, giving a much farther estimated liquidation price. However, a trade that goes badly wrong can drain your full account. This tool shows a simplified estimate — actual cross margin varies by exchange and open positions. Always verify on your exchange.
For most traders, especially beginners, Isolated Margin is the recommended choice. It gives full control over your maximum loss per trade. Cross margin is typically used by experienced traders hedging positions or running multiple correlated trades simultaneously.
Regardless of which margin type you choose, always calculate your liquidation price before entering any position. Knowing your liquidation level in advance allows you to set an intelligent stop loss that protects you from forced liquidation.
How to Avoid Liquidation in Futures Trading
Liquidation is one of the biggest risks in crypto futures trading and the primary reason most beginners lose money. The good news is that liquidation is almost entirely avoidable with disciplined risk management. Here are the most effective strategies used by professional traders.
1. Always set a stop loss. Your stop loss should be placed where your trade idea is invalidated — not at your liquidation price. Ideally, set it at least 2x–3x above the liquidation level as a safety buffer before forced closure.
2. Use low leverage. At 5x leverage, liquidation is roughly 18–19% from entry. At 20x, it is only 4–5% away. In volatile crypto markets, high leverage almost guarantees liquidation eventually. Keep leverage at 5x or below until you have consistent trading experience.
3. Risk only 1–2% per trade. Professional traders never risk more than 1–2% of total capital on a single position. Pair this calculator with our Position Size Calculator to find the exact trade size that matches your risk tolerance.
4. Add margin proactively. If a position moves against you in Isolated mode, you can add more margin to push the liquidation price further. Only do this if your trade thesis remains valid — do not add margin simply to avoid accepting a loss.
Best Leverage for Beginners in Crypto Futures
One of the most common mistakes beginner crypto traders make is using too much leverage. Exchanges like Binance and Bybit allow up to 125x, which is extremely dangerous for inexperienced traders. High leverage turns a normal 5–10% market correction into a total wipeout of your position.
For beginners, 2x to 5x leverage is the recommended starting range. At 5x leverage, your liquidation price is approximately 18% away from entry (assuming 0.5% MMR), which gives enough room for normal crypto volatility without risking immediate liquidation.
Intermediate traders with 6–12 months of consistent experience may consider 5x to 15x with strict stop losses. Professionals typically operate at 3x to 20x using sophisticated hedging strategies and precise position sizing. Using 50x, 75x, or 125x leverage is essentially speculation — the odds are stacked heavily against the trader.
Remember: leverage amplifies both profits and losses equally. Before increasing leverage, always use this calculator to verify how close your liquidation price will be. If it is within 5–8% of your entry, you are operating in a danger zone and should reduce leverage immediately.