The liquidation price is the number you must closely monitor in futures trading. When the market price reaches it, the system force-closes your position and your margin is fully lost. Knowing how to check and calculate it is key to protecting your capital. Visit Binance and use the Binance Official App (Apple users, refer to the iOS Installation Guide) to find where the liquidation price is displayed.
Where to Find Your Liquidation Price
Before Opening
Most exchanges show an estimated liquidation price after you enter position parameters (direction, leverage, size).
While Holding
After opening, the "Current Positions" or "Positions" tab shows each position's liquidation price, usually labeled "Liq. Price."
Important Note
Liquidation prices aren't fixed — fees, funding rates, and margin changes all cause it to shift. Check regularly.
Calculation Principles
The core logic: when your position's loss reduces margin to just the maintenance margin level, liquidation triggers.
Long Position Formula
Liq. Price = Entry Price x (1 - 1/Leverage + Maintenance Margin Rate)
Example: 10x long BTC at 60,000, maintenance rate 0.5%
- Liq. Price = 60,000 x (1 - 0.1 + 0.005) = 60,000 x 0.905 = 54,300
Short Position Formula
Liq. Price = Entry Price x (1 + 1/Leverage - Maintenance Margin Rate)
Example: 10x short BTC at 60,000, maintenance rate 0.5%
- Liq. Price = 60,000 x (1 + 0.1 - 0.005) = 60,000 x 1.095 = 65,700
Factors Affecting Liquidation Price
- Leverage: Higher = closer to entry. 2x ~50%, 10x ~10%, 50x ~2%
- Margin amount: More margin (isolated) or more balance (cross) = further liquidation price
- Maintenance margin rate: Larger positions have higher rates
- Funding rate and fees: Reduce available margin over time
- Unrealized P&L from other positions (cross mode)
How to Push Liquidation Price Further Away
- Lower leverage: Switching 10x to 5x doubles the distance
- Add margin: Manually add to isolated positions
- Reduce position: Partial close releases margin
- Allocate more initial margin: Better than emergency margin calls
Mark Price and Liquidation
Exchanges use mark price (not last traded price) for liquidation calculations. Mark price is weighted across multiple exchanges' spot prices to prevent manipulation-triggered liquidations.
FAQ
Liquidation Price vs Stop-Loss — Which Matters More?
Stop-loss should always be set BEFORE the liquidation price. Stop-loss is proactive; liquidation is the last line of defense.
Why Does My Calculated Price Differ from the Exchange?
Real calculations include fees, funding rates, and maintenance rates. Exchange-displayed prices are more accurate.
Does Liquidation Price Change in Cross Mode?
Yes. Account balance changes (other positions' P&L, deposits/withdrawals) all affect it.
Does Liquidation Loss Always Equal the Margin?
In isolated mode, loss is close to but not exactly equal to margin — actual loss depends on execution price and fees.
Safety Tips
- Always confirm liquidation price before opening
- Set stop-loss well before the liquidation price
- Monitor via the Binance Official App
- With high leverage, liquidation price is very close — exercise extreme caution
- Increase monitoring frequency during volatile markets