Liquidation is arithmetic, not bad luck. Enter your position and see exactly where the exchange takes it — and whether your stop sits inside that distance.
Liquidation price—
Distance from entry—
Stop vs liquidation—
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long : liq = entry x (1 - 1/leverage + maintenance_margin_rate)
short : liq = entry x (1 + 1/leverage - maintenance_margin_rate)
At 10x with a 0.5% maintenance margin you are liquidated about 9.5% below entry. At 25x,
about 3.5%. At 50x, about 1.5% — which is inside the ordinary hourly range of most large caps,
meaning a 50x position is a coin flip against noise regardless of whether your thesis is right.
Three things the number tells you
Your stop must sit inside your liquidation distance. If it doesn't, the exchange is your
stop-loss, and it is a more expensive one.
Position size is the real control, not leverage. 5x on 20% of equity and 20x on 5% of
equity carry the same notional but completely different liquidation distances.
Cross vs isolated changes what gets destroyed. Cross uses your whole balance as margin,
so it liquidates later and takes more when it does.