Estimated Liquidation Price

 

The estimated liquidation price in futures trading is the price level at which a trader's position will be automatically closed by the exchange due to insufficient margin to maintain the position. This occurs when the market moves against the trader's position, resulting in losses that exceed the available margin.

Users can check the liquidation price on both the order and position tabs to assess the risks of opening or maintaining a position. This price serves as a reference point, calculated based on the current market and account conditions. It is important to note that the estimated liquidation price is variable and can change with market fluctuations, trades, and margin levels.

 

Calculation of Estimated Liquidation Price

 

Formula for Isolated Margin

 

Terms:

 

• IsolatedLiq: Estimated liquidation price in isolated margin mode.
• IsolatedMargin: Investment amount for the isolated margin in the current trading pair.
• OpenPrice: Entry price for the current trading pair.
• OpenAmount: Size of the current position.
• MMR: Maintenance margin rate for the trading pair.
• CoinMainIndexPrice: Index price for the Coin-M Futures trading pair (1 for USDT-M/USDC-M futures).
• OpenDirection: Position direction (1 for long, -1 for short).
• TakerFeeRatio: Fee applicable at the time of the taker order.

 

Formula:
 

 

Formula for Cross Margin

The estimated liquidation price in cross margin mode varies based on whether it is in hedging or one-way mode. Below are the distinct formulas for each.

 

 

Hedging Mode

 

Terms:

 

• CrossLiq: Estimated liquidation price in cross margin mode.
• AccountAsset: Total account assets.
• IsolatedAllMargin: Margin for all isolated margin positions.
• IsolatedAllCoinUnrealizedPnl: Unrealized profit and loss for all isolated margin positions.
• CrossAllCoinUnrealizedPnl: Unrealized profit and loss for all cross margin positions.
• CrossOtherUnrealizedCoinPnl: Unrealized profit and loss for cross margin positions (excluding the current pair).
• OpenLongPrice: Entry price for long positions.
• OpenShortPrice: Entry price for short positions.
• OpenLongAmount: Size of long positions.
• OpenShortAmount: Size of short positions.
• OrderTotalMarketCap: Total value of open orders for the current pair (quantity × order price).
• MMR: Maintenance margin rate for the trading pair.
• CoinMainIndexPrice: Index price for the Coin-M Futures trading pair (1 for USDT-M/USDC-M futures).
• TakerFeeRatio: Fee at the time of the taker order.

 

Formula:
 

 

 

One-Way Mode

 

Terms:

 

• CrossLiq: Estimated liquidation price in cross margin.
• AccountAsset: Total assets in the account.
• IsolatedAllMargin: Margin for all isolated margin positions.
• IsolatedOrderAllMargin: Margin for all open isolated margin orders.
• IsolatedAllCoinUnrealizedPnl: Unrealized profit and loss for all isolated margin positions.
• CrossAllCoinUnrealizedPnl: Unrealized profit and loss for all cross margin positions.
• CrossOtherUnrealizedCoinPnl: Unrealized profit and loss for cross margin positions (excluding the current pair).
• OpenAmount: Size of the current position.
• OpenDirection: Position direction (1 for long, -1 for short).
• LastMarkPrice: Mark price for the current trading pair.
• MMR: Maintenance margin rate for the trading pair.
• CrossAllMM: Current maintenance margin of all trading pairs under cross margin mode. The maintenance margin of a single trading pair is (the sum of the position value of a single trading pair and the value of open orders) × MMR.
• CoinMainIndexPrice: Index price for the Coin-M Futures trading pair (1 for USDT-M/USDC-M futures).
• TakerFeeRatio: Fee applicable at the taker order time.

 

Formula:

 

 

This structure ensures you understand how the estimated liquidation price is determined under different margin modes, helping you manage your trading risks effectively.