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89% of futures traders are liquidated in their first month. Here is what the 11% do differently. Back when I lost my $5,400, I treated the liquidation price like a distant suggestion rather than the mathematical boundary of my trading career. I didn’t know how to calculate it, so I let the exchange tell me when I was broke. That is a loser’s game. Today, we handle the math before we ever touch a single $SOL or $NEAR contract.
To find your liquidation price, you use the simplified formula: Liquidation Price = Entry Price / (1 + (Leverage * Maintenance Margin Ratio)). Assuming a standard maintenance margin of 0.5% (0.005), let's look at a $1,000 account going long on BTC at $60,000. At 10x leverage, your liquidation price...