Enter your position — get a plain-English risk assessment in seconds
This tool analyzes a leveraged futures trade and shows where it would be liquidated along with the risk involved in the position. It helps traders understand, before committing, how much room the price has to move against them and what leverage does to that cushion.
You enter details like entry price, leverage, direction, and position size, and it estimates the liquidation price, the distance to it, and the loss at that point. Higher leverage places the liquidation price closer to entry, meaning a smaller adverse move is enough to wipe out the margin.
The liquidation price is the level at which an exchange forcibly closes a leveraged position because the losses have consumed the margin backing it. Once price reaches it, the position is closed automatically, usually with the loss of the posted margin.
Higher leverage means a smaller price move against you is needed to hit liquidation, because your margin cushions a smaller percentage of the position. Lower leverage places the liquidation price further away, giving the trade more room to move.
A stop-loss set closer than the liquidation price is intended to exit the trade before liquidation, capping the loss at a level you choose. Liquidation is the exchange's last-resort mechanism, so managing risk with a stop generally means closing well before that point is reached.