๐โ ๏ธ Listen up, rookies. I blew $600 learning this the hard way: liquidation isn't bad luck, it's brutal math. You *must* know your exact liquidation price *before* you enter a trade. Here's the formula for isolated long positions:
`Liquidation Price = (Entry Price * Quantity - Initial Margin) / (Quantity * (1 - Maintenance Margin Rate))`
Let's use Binance's typical 0.5% (0.005) for MMR.
Imagine a $1000 account. You long BTC at $60,000.
**10x Leverage:** You commit $1000 as initial margin. Position Value = $1000 * 10 = $10,000. So, Quantity = $10,000 / $60,000 = 0.16666 BTC.
Plugging in: `LP = (60000 * 0.16666 - 1000) / (0.16666 * (1 - 0.005))`
Your exact liquidation price is around **$54,271**.
**Now, 20x Leverage:** Same $1000 initial margin. Position Value = $1000 * 20 = $20,000....
`Liquidation Price = (Entry Price * Quantity - Initial Margin) / (Quantity * (1 - Maintenance Margin Rate))`
Let's use Binance's typical 0.5% (0.005) for MMR.
Imagine a $1000 account. You long BTC at $60,000.
**10x Leverage:** You commit $1000 as initial margin. Position Value = $1000 * 10 = $10,000. So, Quantity = $10,000 / $60,000 = 0.16666 BTC.
Plugging in: `LP = (60000 * 0.16666 - 1000) / (0.16666 * (1 - 0.005))`
Your exact liquidation price is around **$54,271**.
**Now, 20x Leverage:** Same $1000 initial margin. Position Value = $1000 * 20 = $20,000....