Futures, Leverage & Risk · Lesson 4
Liquidation
How close is the cliff edge?
Members

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.
Watch this lesson with Nazli. The full video, worked example, calculator, quiz and Ask Nazli are part of Money Globe X Silver, Gold and Platinum. Join the waitlist for free lessons and your launch invitation.
Next lesson: Funding and open interest
Educational information only - not financial advice.