Liquidation

How close is the cliff edge?

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In this lesson

Estimate a liquidation price, understand why it comes earlier than the simple maths says, and keep stops well before it.

Key takeaways

Liquidation distance ≈ 100% ÷ leverage (from your entry).
Long: liquidation below entry; short: liquidation above entry.
Maintenance margin and fees make real liquidation come a little earlier than the simple estimate.
Place your stop-loss well before the liquidation price.

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Educational information only - not financial advice.

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