2025-12-28 01:27:15

Quick Guide: Understanding Liquidation Levels in Crypto Trading

Getting liquidated can wipe out your position in seconds. Here's what you need to know.

What's a liquidation level? It's the price point where your margin position gets force-closed by the exchange. Holding leverage means risk—cross that threshold and you're done.

How to calculate it:
- Long position: Entry price × (1 - margin%)
- Short position: Entry price × (1 + margin%)

With 5x leverage on 10,000 USDT? Your liquidation sits roughly 20% from entry. That's tighter than you think.

Pro tips:
• Always set stop-losses below liquidation level
• Use lower leverage on volatile pairs (Bitcoin, Ethereum typically swing 10-15% daily)
• Check real-time funding rates—they affect your risk exposure
• Don't overextend: 2-3x leverage gives you breathing room

The market doesn't care about your thesis. It cares about price action. Set your limits, manage your risk, and don't let emotions turn a bad trade into a liquidation notice.

BTC0,38%

ETH0,42%

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OPsychology

· 2h ago

Using 5x leverage is truly a gambler's game; a 20% move essentially means a ticking time bomb that could explode at any moment.

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LiquidationWatcher

· 10h ago

Nightmare for 5x leverage players, you lose 20% just like that

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MetaMaximalist

· 10h ago

lmao people really out here yoloing 5x leverage like it's not literally a liquidation speedrun. the "breathing room" bit—yeah that's just code for "don't be an idiot" but most won't listen anyway ngl

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HalfIsEmpty

· 10h ago

5x leverage is really a trap; a 20% fluctuation can wipe you out.

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WhaleInTraining

· 10h ago

Using 5x leverage is really like dancing on the edge of a knife; a 20% drop can wipe out your account instantly. I was blown out like that before, so now I only dare to play with 2-3x leverage.

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MEVSandwichMaker