Liquidation price is the level at which a leveraged position has lost enough that the remaining margin falls below the exchange's maintenance-margin requirement, triggering forced closure. Cross-margin and isolated-margin modes use different inputs and give different liquidation prices for the same trade.
For a one-way isolated long, a simplified estimate is: liq ≈ entry · (1 − 1/leverage + mmr), where mmr is the maintenance margin rate (typically 0.4%–1% depending on tier). The actual number on the exchange differs slightly because of funding, fees, and tiered margin.
Trading well inside the liquidation level is mandatory, not optional — a stop loss should fire well before liquidation. A common rule: keep stops at least 2× the distance from entry to liquidation, so a stop-skip caused by a fast move still leaves margin to spare.
Formula
long (isolated, simplified): liq ≈ entry · (1 − 1/L + mmr) short (isolated, simplified): liq ≈ entry · (1 + 1/L − mmr)
Example
Entry 50,000 long, 10× leverage, mmr = 0.5%. Liq ≈ 50,000 · (1 − 0.1 + 0.005) = 45,250.
How Noon Barbari uses Liquidation price
Every concept here is implemented in the platform. Open the relevant docs or tool to see it in action.
Liquidation price calculator →Related terms
- Risk
Leverage
Position notional divided by posted margin. 10× leverage = 10× the equity exposure.
- Risk
Stop loss
A pre-committed exit level that caps the maximum loss on a trade.
- Risk
Position size
How many units of an asset a trade holds — derived from risk budget and stop distance.
- Risk
Risk per trade
Dollar amount (or % of equity) you lose if the stop on a single trade hits.