How to calculate the liquidation price for Crypto Futures
On NeXoBiT’s Crypto Futures platform, after you open a position, in some cases you can check the liquidation price for an open cross-margin or isolated margin position directly from the ‘Positions’ window.
Knowing your liquidation price can help you effectively manage your risk and make informed trading decisions to protect your capital.
How to check the liquidation price
Cross-margin positions share the available margin across your account, which means your entire margin balance is at risk in the event of liquidation.
How to view the liquidation price
Open the ‘Positions’ tab and select the trade you want to view.
If the position is open and has an available liquidation price, the liquidation price for your position will be displayed in the Positions tab.
Access margin settings
You can access margin settings in the Order tab.
Changing the leverage of an existing position
Click the pencil icon next to ‘Margin Type’ in the Order window.
If you change the leverage of the existing position, the new liquidation price will be shown (in most cases).
For isolated margin positions
With an isolated margin, the margin allocated to a specific position is isolated, limiting the potential loss to only that position.
Locate your position
Open the ‘Positions’ window and select the trade you want to review.
In case you want to change the leverage
Access the margin settings
Click the pencil icon next to ‘Margin Type’ in the Order window.
Adjust leverage (if applicable)
If your position was previously a cross-margin position, change the Margin Type to Isolated by adjusting the leverage level.
Click ‘Set’ to confirm the change.
Recheck the liquidation price
Return to the Order window and click the pencil icon next to ‘Margin Type’ again.
The liquidation price for your isolated margin position will now be recalculated and displayed on the ‘Margin Edit’ screen.
Additional tips for managing liquidation risk
Understand leverage’s impact Higher leverage increases your exposure and narrows the distance between your entry price and liquidation price. Use leverage cautiously to reduce the risk of liquidation.
Monitor market volatility Sudden price swings can lead to rapid margin depletion. Keeping an eye on market trends can help you make timely adjustments.
Use stop-loss orders Setting a stop-loss can help close your positions before they reach the liquidation threshold, minimizing potential losses.
Maintain a buffer Always ensure you have additional funds in your account to provide a margin cushion, especially during high-volatility periods.
By providing these tools and insights, NeXoBiT ensures that you can stay in control of your trades while minimizing risk.