To avoid liquidation and losses in Features!
You need to understand when you will be liquidated on your position and total position!
The Liquidation Price of Futures is the price at which your position will be liquidated (closed) due to insufficient margin to maintain the position.
When the market price moves against your position, the value of your position will decrease. If the value of your position falls below the minimum required level, the system will automatically liquidate your position to limit risk.
The Liquidation Price is calculated based on the following factors:
- Entry Price
- Contract Size
- Leverage
- Margin Requirement
Liquidation Price formula:
Liquidation Price = (Entry Price x (1 + (Leverage x (1 - Margin Requirement)))))
Example:
- Entry Price: 2.05 USDT
- Contract Size: 100
- Leverage: 5x
- Margin Requirement: 0.5%
Liquidation Price = (2.05 x (1 + (5 x (1 - 0.005))))) ≈ 1.958 USDT
If the market price falls below 1.958 USDT, your position will be liquidated.
Note:
- The Liquidation Price may change based on market and account factors.
- Always monitor the market price and adjust your position as needed to avoid liquidation.
🆘 Adding funds to your Feature position will decrease the liquidation price and provide additional protection.
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