Notice: Undefined index: Features in /data/phemex/wp/wp-content/themes/knowall/header.php on line 1376
combobox arrow
Phemex Blog
Phemex Crypto Blog: Learn the latest news, updates, and industry insights on bitcoin futures, bitcoin trading, crypto derivatives exchange, and related blockchain technology.
  1. Home
  2. User Guides
  3. Margin Trading Concepts
  4. How are Liquidation Prices calculated?

How are Liquidation Prices calculated?

The process of calculating your Liquidation Price varies based on the type of contract you hold. Below are all of the relevant equations for each type of possible contract.

Please note that your Initial Margin will vary depending on whether you use Cross Margin or Isolated Margin. Cross Margin applies the entirety of your available funds, whereas Isolated Margin must be calculated by dividing the Open Value by the Leverage used.

Cross Margin: Initial Margin = Total Margin

Isolated Margin: Initial Margin = Open Value/Leverage

Inverse Contract Long

Liquidation Value = Open Value – Maintenance Margin + Initial Margin

Liquidation Value = Open Value – Open Value x Maintenance Margin + (Open Value/Leverage)

Liquidation Price = (Contract Quantity x Contract Size)/Liquidation value

Inverse Contract Short

Liquidation Value = Open Value + Maintenance Margin – Initial Margin

Liquidation Value = Open Value + Open Value x Maintenance Margin – (Open Value/Leverage)

Liquidation Price = (Contract Quantity x Contract Size)/Liquidation value

Linear Contract Long

Liquidation Value = Open Value + Maintenance Margin – Initial Margin

Liquidation Value = Open Value + Open Value x Maintenance Margin – (Open Value/Leverage)

Liquidation Price = Liquidation Value/(Contract Quantity/Contract Size)

Linear Contract Short

Liquidation Value = Open Value – Maintenance Margin + Initial Margin

Liquidation Value = Open Value – Open Value x Maintenance Margin + (Open Value/Leverage)

Liquidation Price = Liquidation Value/(Contract Quantity/Contract Size)


For any inquiries contact us at support@phemex.zendesk.com.

Follow our official Twitter account to stay updated on the latest news.

Join our community on Telegram to interact with us and other Phemex traders.

Phemex, Trade Simple

Was this article helpful?

Related Articles