MONEY GLOBE X
Home / Classroom / Futures, Leverage & Risk
Futures, Leverage & Risk · Lesson 4

Liquidation

How close is the cliff edge?

Members

Liquidation

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.

Get free lessons

Join the waitlist - free lessons now, your invitation at launch.

I'm interested in (optional):

Sent by Money Globe Fintech Incorporated (Money Globe X). Unsubscribe any time.