how it works
- position size = margin times leverage.
- for a long, the estimated liquidation price = entry x (1 - 1 / leverage + maintenance margin). for a short, entry x (1 + 1 / leverage - maintenance margin).
- pnl = position size x the price move in percent, in your direction. return on margin = pnl divided by margin.
questions
what is a liquidation price?
the price at which your margin no longer covers the loss on the position. the exchange then closes it and you lose the margin you posted.
why is the liquidation price an estimate?
each exchange uses its own maintenance margin tiers, funding and fees. this calculator uses the standard isolated margin formula. on hyperliquid, the maintenance margin is half of the initial margin at max leverage.
does more leverage mean more profit?
it means a bigger position for the same margin, so both gains and losses grow, and the liquidation price moves closer to your entry. at 10x a move of about 10 % against you ends the trade.