Questions people ask
How is the liquidation price calculated?
For isolated margin a simple estimate is: long = entry x (1 - 1/leverage + maintenance margin), short = entry x (1 + 1/leverage - maintenance margin). With a 60,000 entry, 10x leverage and 0.5% maintenance margin the long liquidates near 54,300.
Is the result exact?
No. It is an estimate. Fees, funding already paid and tiered maintenance margin on larger positions change the real figure, so check the number your exchange shows.
Should my stop be before or after the liquidation price?
Before it, with room to spare. A stop beyond the liquidation price never triggers because the exchange closes the position first.
Does liquidation use the last price or the mark price?
Most exchanges use the mark price, a smoothed price from several markets. A candle can touch your level on the chart without a liquidation, and the reverse can also happen.