The liquidation price is not fixed; it changes based on:
- Changes in margin balance
- Fees and interests
- Type of account
- Market movements
- Adding or withdrawing funds from the margin
Example (simplified):
- If you start a trade with $100 at 10x leverage and the liquidation price is 9000 (for Bitcoin, for example).
- After 3 days, $2 in fees and interest have been deducted.
- Your actual capital is now $98, so the liquidation point gets closer (for example, it becomes 9010).
- The longer you hold the position, the closer the liquidation gets.
Tip:
- Always monitor your margin balance and the fees/interests paid.
- Use stop-loss orders.
- Do not use high leverage unless fully aware of its risks.