Let’s talk about liquidation prices.
The entry price, leverage, position size, and applicable maintenance margin rate together determine the liquidation price for an isolated-margin position.
One thing that’s easy to overlook: the larger the position, the higher the maintenance margin rate. With the same leverage, a larger position will have a liquidation price closer to its entry price.
After placing an order, check the liquidation price first, then compare it with typical daily price movements. If it’s too close, reduce your position size.
Coin mentioned: $BTC , current price 82601.26 (24h -1.27%).
The entry price, leverage, position size, and applicable maintenance margin rate together determine the liquidation price for an isolated-margin position.
One thing that’s easy to overlook: the larger the position, the higher the maintenance margin rate. With the same leverage, a larger position will have a liquidation price closer to its entry price.
After placing an order, check the liquidation price first, then compare it with typical daily price movements. If it’s too close, reduce your position size.
Coin mentioned: $BTC , current price 82601.26 (24h -1.27%).