When trading with leverage using BN, calculating leverage and liquidation points are key risk indicators. The following is a detailed explanation:

1. Leverage

The leverage provided by BN varies by trading pair and account level:

Isolated Margin

Typically supports 1x–10x (some mainstream trading pairs like BTC/USDT can reach higher). Users can manually select the multiplier, and different multipliers affect available funds and liquidation risk.


Cross Margin

Leverage is dynamically adjusted, calculated automatically based on account equity and risk, and may exceed 10x (but with higher liquidation risk).


Contract Trading (Futures)

USDT-based contracts: typically 1x–125x. Coin-based contracts: typically 1x–75x.


Note: The higher the leverage, the greater the liquidation risk, so choose carefully.

2. Liquidation Point Calculation

Liquidation (Forced Liquidation) depends on the Maintenance Margin Rate (MMR), calculated as follows:

1. Isolated Margin/Contract Liquidation Price

Long:
Liquidation price = Opening price × (1 - Initial Margin Rate) / (1 - Maintenance Margin Rate) Liquidation price = (1 - Maintenance Margin Rate) × Opening price × (1 - Initial Margin Rate)
Liquidation price = Opening price × (1 + Initial Margin Rate) / (1 + Maintenance Margin Rate) Liquidation price = (1 + Maintenance Margin Rate) × Opening price × (1 + Initial Margin Rate)
Initial Margin Rate = 1 / Leverage (e.g., 10x leverage = 10%). Maintenance Margin Rate (MMR): Officially set by Binance (e.g., BTC/USDT Isolated Margin is 0.8%).


2. Cross Margin Liquidation

In cross margin mode, all positions share margin, and liquidation risk depends on overall account equity. When:

Account equity ≤ Total maintenance margin of all positions

Triggers forced liquidation.

3. Contract Forced Liquidation Price (Using USDT as an example)

Forced Liquidation Price = Opening price × Leverage × Leverage - (Direction Coefficient × MMR) Forced Liquidation Price = Leverage - (Direction Coefficient × MMR) × Opening price

Direction coefficient: Long is 1, Short is -1.

3. Example Calculation (BTC/USDT Isolated Margin 10x Leverage)

Opening price: $60,000 Leverage: 10x → Initial margin rate = 10% MMR: 0.8% (Binance official data)

Long liquidation price:

60,000×(1−0.1)1−0.008=54,0000.992≈$54,4351−0.00860,000×(1−0.1)​=0.99254,000​≈$54,435

Short liquidation price:

60,000×(1+0.1)1+0.008=66,0001.008≈$65,4761+0.00860,000×(1+0.1)​=1.00866,000​≈$65,476

4. Factors Affecting Liquidation

Maintenance Margin Rate (MMR): Different trading pairs and leverage correspond to different MMRs (can be checked on the BN official website). Fees and funding rates: Frequent position adjustments or high funding rates may accelerate liquidation. Market liquidity: Extreme market conditions may trigger 'Automatic Position Reduction' or 'Partial Liquidation'.

5. Risk Warning

Use BN 'Simulated Trading' to practice calculations. Monitor 'Liquidation Price' in real-time (automatically displayed in position details). It is recommended to set a stop-loss or enable the 'Risk Limit' feature.