Futures Trading | What affects the liquidation price?
In cross margin mode, funding payments and trading fees both change your account balance. The longer you hold a position, the more its liquidation price may shift.
Highly leveraged positions have very little initial margin to begin with. After deducting maintenance margin, there’s even less room to absorb unrealized losses, so the liquidation price is closer to the entry price.
For the corresponding coin: $BTC is trading at 77154.71, down 4.93% over 24 hours.
Leverage isn’t a must—if you’re unfamiliar with it, spot trading is perfectly fine too.
In cross margin mode, funding payments and trading fees both change your account balance. The longer you hold a position, the more its liquidation price may shift.
Highly leveraged positions have very little initial margin to begin with. After deducting maintenance margin, there’s even less room to absorb unrealized losses, so the liquidation price is closer to the entry price.
For the corresponding coin: $BTC is trading at 77154.71, down 4.93% over 24 hours.
Leverage isn’t a must—if you’re unfamiliar with it, spot trading is perfectly fine too.