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Liquidation is the point where the system closes a leveraged position because the remaining margin is no longer enough to support the trade. In Entry Finance, you do not need to calculate the exact number by hand every time. The terminal already shows the current liquidation price in the trade panel and in the Positions tab. What matters most is understanding what moves that number and why it can change while the trade is open.

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What liquidation means in practice

When a leveraged position loses too much value, the remaining collateral becomes too small for the current exposure. At that point, the risk engine can close the position automatically. This is liquidation. For a trader, the practical meaning is simple:
  • the closer the market gets to your liquidation price, the less room the trade has left
  • higher leverage usually brings the liquidation price closer
  • more margin usually pushes the liquidation price farther away

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What affects liquidation price

The liquidation price is not a random number. It moves because the platform is constantly checking the risk of the open position. The most important inputs are:
  • position size: larger exposure creates more risk
  • margin assigned to the trade: more margin gives the position more room
  • selected leverage: higher leverage means less room before liquidation
  • margin mode: Cross and Isolated behave differently
  • mark price logic: derivatives platforms usually monitor risk using the mark price, not only the last trade
  • maintenance margin requirements: the position must keep enough collateral to remain open
The key idea is: more exposure + less remaining collateral = liquidation price gets closer

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Why mark price matters

Many traders look only at the last traded price on the chart. But liquidation risk is usually evaluated using the mark price. This matters because:
  • the chart can briefly print a price that is different from the mark price
  • unrealized PnL can move based on the mark price
  • liquidation can become closer even if the last visible trade does not look extreme
If you are new to this, read PnL, entry price, mark price first and then come back here.

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Cross vs isolated in real scenarios

The same position can behave differently depending on margin mode.

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Isolated margin

With Isolated, only the margin assigned to that position is supporting it. Example:
  • account balance: 1,000 USDC
  • isolated position margin: 100 USDC
  • leverage: 10x
If the trade moves against you, the position can use only that isolated margin cushion. The rest of the balance does not automatically keep the trade alive. Practical effect:
  • liquidation can happen faster
  • the rest of the account is better protected
  • risk is easier to reason about per trade

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Cross margin

With Cross, the broader available derivatives balance can support the position. Example:
  • account balance: 1,000 USDC
  • position initially opens using 100 USDC
  • unrealized losses grow while the position is open
In cross mode, the risk engine can treat more of the available account collateral as support for the trade. Practical effect:
  • liquidation price may stay farther away than in isolated mode
  • one position can consume more of the account’s risk capacity
  • losses on one trade can reduce the safety buffer for other trades
This is why Cross can feel safer for a single trade, but more dangerous for the account as a whole.

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Why liquidation price can change while the position is open

Many traders expect liquidation price to stay fixed after entry. In practice, it can move. Common reasons:
  • you change leverage or margin settings
  • you add or reduce position size
  • you partially close the trade
  • unrealized PnL changes under Cross
  • active orders reserve or release collateral
So if you check the liquidation price again later and it looks different, that does not automatically mean something is wrong. It often means the amount of collateral supporting the trade has changed.

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Where to see liquidation risk in Entry Finance

In the current terminal, liquidation-related information appears in the places traders already use during position management:
  • the trade summary area in the right trade panel
  • the Positions tab in the lower panel
  • related margin and leverage controls when setting up the trade
These are the places to check before increasing size, changing leverage, or deciding whether a stop-loss is far enough away.