Cryptocurrency Q&A
How to know liquidation price?
How to know liquidation price?
Daniela
Thu Dec 26 2024
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7 answers
1749
I want to understand how to determine the liquidation price. I'm looking for an explanation on the process or formula to calculate it.
7 answers
Claudio
Sat Dec 28 2024
The formula for calculating the liquidation price is straightforward.
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InfinityEcho
Sat Dec 28 2024
It involves subtracting a fraction of the entry price from the entry price itself.
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ethan_carter_engineer
Sat Dec 28 2024
This fraction is determined by the leverage ratio used in the trade.
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Rosalia
Fri Dec 27 2024
Specifically, the formula is liquidation price equals entry price minus one divided by leverage ratio multiplied by entry price.
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HanjiArtist
Fri Dec 27 2024
The concept behind this formula is to identify the point where the trade's margin is completely lost.
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