"How to Calculate Your Liquidity: A Simple Guide"📊
Let's calculate your liquidation price step-by-step using:
Own money: $10
Leverage: 25x
Coin Entry price: $120
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Step 1: Total trade size
With 25x leverage:
> $10 × 25 = $250 total position
So you’re buying $250 worth of the coin at $120.
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Step 2: Calculate liquidation % drop
Leverage = 25x means:
> Liquidation happens if price drops by about 1 / 25 = 0.04 = 4%
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Step 3: Find 4% of $120
> 0.04 × $120 = $4.80
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Step 4: Subtract from entry price
> $120 - $4.80 = $115.20
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Final Answer:
> Liquidation Price = $115.20
If the coin price drops to $115.20, you lose your $10, and your trade is liquidated.
$OM
$DOGE
$SUI
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