Calculate liquidation price for leveraged positions
Liquidation occurs when your unrealized loss equals your initial margin minus the maintenance margin requirement. The exchange closes your position to prevent negative balance.
For longs: Liquidation Price = Entry × (1 - 1/Leverage + MMR). For shorts: Entry × (1 + 1/Leverage - MMR).
Higher leverage means the liquidation price is closer to your entry. With 10x leverage, a ~10% adverse move liquidates you. With 100x, just ~1%.
