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In our trading system, the liquidation price is the price at which a trader’s position will be liquidated due to insufficient margin. The calculation differs for long and short positions, and depends on your account leverage.

Key Definitions

  • maintenanceMarginRate: 0.03 (or 3%) – the minimum margin requirement
  • accountLeverage: totalPositions / totalBalance – leverage used by the trader
  • averageEntryPrice: position / positionQuantity – average entry price for the position

Calculation Formulas

Position TypeFormulaDescription
Longmax(averageEntryPrice × (1 - 1/accountLeverage + maintenanceMarginRate), 0)Liquidation price for long positions
ShortaverageEntryPrice × (1 + 1/accountLeverage - maintenanceMarginRate)Liquidation price for short positions

Usage in API

These liquidation price calculations are used in the Get Account Positions response to provide real-time liquidation prices for each of your open positions.