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What is Liquidation Price?

note

This is a work in progress and can change on the final version.

Liquidation Price​

The price that closes your trade.

Long​

BTC at 60,000, 20× leverage
→ Liquidation = 57,000
(Drop 5% → you’re out)

Short​

BTC at 60,000, 20× leverage
→ Liquidation = 63,000
(Rise 5% → you’re out)

3 rules to never get liquidated​

  1. Stop-loss 1% before liq price.
  2. Use half your money max.
  3. Check liq price every trade.