Enter the total account balance, leveraged positions, and other relevant details into the calculator to determine the cross margin liquidation price.

Cross Margin Liquidation Calculator

Cross
Isolated
Top-up Needed

Leave exactly one field empty to calculate its value.

Related Calculators

Cross Margin Liquidation Formula

The following equations are a simplified way to estimate a cross margin liquidation price for a single position (ignoring fees, funding, and other open positions). Many exchanges use additional exchange-specific rules, so your actual liquidation price may differ.

\begin{aligned}
LP_{\text{long}} &= E\left(1 + \mathrm{MMR} - \frac{B}{P}\right) \\
LP_{\text{short}} &= E\left(1 - \mathrm{MMR} + \frac{B}{P}\right)
\end{aligned}
  • Where LP is the liquidation price (USD per unit)
  • E is the entry price (USD per unit)
  • B is the total account balance / collateral available to support the position (USD)
  • P is the position notional value (USD)
  • MMR is the maintenance margin rate (as a decimal, e.g., 0.5% = 0.005)

To estimate the cross margin liquidation price, compute the ratio B/P (your margin fraction, which equals 1 / implied leverage), then apply the appropriate long/short equation using the entry price and maintenance margin rate.

What is a Cross Margin Liquidation?

Definition:

A cross margin liquidation occurs when the margin in a trader’s account is no longer sufficient to support a leveraged position across all open trades, causing the positions to be force-closed to prevent further losses.

How to Calculate Cross Margin Liquidation?

Example Problem:

The following example outlines the steps and information needed to estimate the Cross Margin Liquidation Price (for a single position, simplified).

First, determine your total account balance (collateral available). In this example, the balance is $100.

Next, identify the position notional and entry price. Here, the position is 10 units entered at $400 per unit, so the position notional is P = 10 × $400 = $4,000. Assume a maintenance margin rate of 0.5% (MMR = 0.005) and a long position.

Finally, calculate the liquidation price using the formula above:

LPlong = E × (1 + MMR − B/P)

LP = $400 × (1 + 0.005 − ($100 / $4,000))

LP = $400 × (1.005 − 0.025) = $400 × 0.98 = $392

FAQ

How does cross margin liquidation differ from isolated margin liquidation?

In cross margin mode, a trader’s entire available balance is used to help maintain positions, which can reduce the chance that a single position is liquidated compared to isolated margin. However, if liquidation occurs in cross margin, it can affect other positions in the account because all positions share the same collateral pool.

What factors can affect the liquidation point in cross margin trading?

Factors such as total account equity (including unrealized P&L), position size, entry price, market volatility, maintenance margin requirements, and exchange-specific fees/rules can all impact when a cross margin liquidation occurs.

How does a Cross Margin Liquidation Calculator help traders?

A Cross Margin Liquidation Calculator helps traders estimate a potential liquidation point by considering account balance, position size, entry price, and maintenance margin rate. This can help with risk management, but actual liquidation prices may differ by exchange and by whether fees, funding, and multiple open positions are included.