| Position value | — |
| Quantity | — |
| A 1% move is worth | — |
| On the margin it weighs | — |
| Estimated liquidation price | — |
| Distance to liquidation | — |
Liquidation is an estimate. Every exchange calculates it in its own way, with its own maintenance margin, fees and funding. You only see the real price on the platform you use.
The calculations run only in your browser and no data is sent.
Leverage lets you open a position bigger than the money you put in. With 1,000 euros of margin and leverage of 10 you control a 10,000 position. Gains and losses are worked out on the 10,000, not on the 1,000. A 1% price move is therefore worth 100 euros, that is 10% of your margin.
This is where many people get hurt. Leverage does not change the direction of the market, it only changes how much being wrong costs you. With leverage of 20 a 5% move against you is enough to lose the whole margin.
When losses eat up almost all the margin, the exchange closes the position for you. That is liquidation. The calculator estimates it with a simple formula that takes into account leverage and maintenance margin, the small part of margin the exchange always wants to see in the account. We set 0.5%, but you can change it.
It is an estimate and should be taken as one. Every exchange has its own rules, and fees and funding move the liquidation price a little closer. Use it to get an idea, then check the value your platform shows you.
Compare the distance to liquidation with the distance to your stop. If liquidation comes before the stop, the leverage is too high for that trade. A stop close to the entry with moderate leverage is almost always more prudent than high leverage without a stop.
In STA cards the stop is there from the first minute. To better understand how margin works, read the guide to leverage.
Every card as soon as it closes, with the result and what STA learned from it. It's free and you don't need to sign up.
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Try DEMO for free →This tool is for information only and is not investment advice. Trading crypto assets carries a high level of risk, including the loss of all the capital you use. The numerical examples are illustrative.
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