How to calculate liquidation price on Binance futures
Binance closes your position when the money left in it falls to the maintenance margin, a small share of the position size (usually 0.4% to 1% for small positions, more for big ones). The liquidation price is the price where that happens. For one position the formula is:
side = 1 for long, -1 for short; qty = margin x leverage / entry
Example: long BTCUSDT at 60,000 with 10x and 1,000 USDT isolated margin. The position is 10,000 USDT, or 0.1667 BTC. With a 0.5% maintenance rate the liquidation price is about 54,271, a 9.5% drop. At 20x the same trade is liquidated after a drop of about 4.5%.
Cross vs isolated margin
In isolated mode only the margin of this trade backs the position. In cross mode your whole futures balance backs it, so price has to move much further before liquidation. The flip side: in cross mode a bad trade can take the whole balance, not just its own margin.
Why your number may differ from Binance
- Maintenance rates depend on the pair and the position size (tiers). Set the exact rate and maintenance amount in Advanced.
- In cross mode other open positions and their unrealized PnL change the result.
- Binance uses the mark price, not the last price, to trigger liquidation.
PnL and ROE
ROE = PnL / margin x 100%
fees = (qty x entry + qty x exit) x fee rate
Example: long at 60,000 with 500 USDT margin and 10x, closed at 61,200 (+2%). PnL is +100 USDT, ROE +20%, taker fees about 5 USDT. Leverage multiplies ROE, not the price move: the same 2% against you is -20%.
Position size from your risk
Most accounts are lost to oversized positions, not bad entries. Decide first how much of the balance you accept to lose if the stop is hit, then let the stop distance set the size:
position size = risk amount / stop distance %
With 1,000 USDT and 1% risk you risk 10 USDT. If the stop is 2% away, the position is 500 USDT. Leverage then only decides how much margin is locked, not how much you lose at the stop.
- 1%: survives long losing streaks.
- 2%: a common standard.
- 3%: aggressive, drawdowns get hard to recover.
Your liquidation price vs everyone else's
This calculator shows where your own position breaks. The liquidation heatmap shows where the positions of other traders on the same pair would be liquidated, estimated from open interest and common leverage, plus real orders in the order book. It shows where leverage sits, not where price will go. If your liquidation price sits inside a big band, many traders share your weak spot.
FAQ
How is the liquidation price calculated on Binance futures?
Binance liquidates a position when your margin falls to the maintenance margin. For one position: liquidation price = (margin + maint. amount - side x qty x entry) / (qty x MMR - side x qty), where side is 1 for long and -1 for short. In cross mode margin is your futures balance.
Why does cross margin move the liquidation price further away?
In cross mode your whole futures balance backs the position, so price has to move further before the balance runs out. In isolated mode only the margin of this trade backs it, so liquidation is closer.
Why is my liquidation price on Binance a little different?
Binance uses maintenance margin tiers that depend on the pair and position size, and in cross mode other open positions and unrealized PnL also count. Use the Advanced field to set the exact maintenance rate from your pair's tier.
What is ROE in futures?
ROE is return on equity: profit or loss divided by the margin you put in. With 10x leverage a 1% price move gives about 10% ROE.
How do I size a position by risk?
Pick how much of your balance you accept to lose, then divide that amount by the distance to your stop-loss in percent. Example: risking $30 with a stop 2% away gives a $1,500 position.
A planning tool, not financial advice. Results are estimates; always check the numbers in your exchange order form. Leveraged futures carry high risk.