The method
How it is worked out
- maintenance margin
- Minimum equity the exchange requires
Find the price at which a leveraged position is liquidated, how far away it is, and what leverage keeps you safe for a given move. The result updates as you type so you can compare scenarios quickly.
The method
Keep in mind
Use the calculator to compare scenarios rather than as a guaranteed forecast.
Find the price at which a leveraged position is liquidated, how far away that is, and the maximum leverage that survives the adverse move you want to withstand.
For a long, liquidation is entry times one minus one over leverage plus maintenance margin; for a short, entry times one plus one over leverage minus maintenance. Distance is the percentage move from entry. Safe leverage is one divided by the tolerated move plus maintenance.
A 10× long from £60,000 with 0.5% maintenance liquidates at £54,300, a 9.5% move. To survive a 20% drop, leverage must be no more than 4.9×.
Put it to work
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What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Margin and futures traders, anyone using a leveraged token or perpetual, and risk-conscious investors checking a position before entering.
Mistakes worth avoiding
Questions
Find the price at which a leveraged position is liquidated, how far away it is, and what leverage keeps you safe for a given move.
For a long, liquidation is entry times one minus one over leverage plus maintenance margin; for a short, entry times one plus one over leverage minus maintenance. Distance is the percentage move from entry. Safe leverage is one divided by the tolerated move plus maintenance.
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
Using leverage without knowing the liquidation price. Forgetting funding fees erode margin over time. Ignoring that exchanges liquidate on mark price, which spikes can hit.
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
Executive Insights
Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.