Leverage Simulator — Liquidation Price, PnL & Margin Calculator
Enter entry price, leverage (1x–100x), position size, and direction (Long/Short) to instantly calculate liquidation price, PnL at various price levels, and required margin. Compare leverages side by side with AI risk diagnosis.
⚠️ Warning: Liquidation is only 9.5% away! Reduce leverage or add margin.
Liquidation Price
$76,925
Distance to Liq.
9.5%
Required Margin
$100
● Blue = PnL, ● Red = Liquidated zone
Disclaimer — This simulator is for educational purposes only. Leverage trading involves significant risk of loss. Past results do not guarantee future performance.
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Frequently Asked Questions
Q. What is a liquidation price in leverage trading?
The liquidation price is the level at which your position is forcibly closed. For Longs, if price falls below liquidation; for Shorts, if price rises above. Binance formula: Liquidation = Entry × (1 − 1/Leverage + MMR).
Q. Why is higher leverage riskier?
10x leverage means a 10% price drop wipes your entire margin. 100x leverage means a mere 1% move triggers liquidation. Higher leverage amplifies both gains and losses proportionally — beginners should use 5x or less.
Q. What's the difference between Isolated and Cross Margin?
Isolated Margin limits your risk to the margin assigned to a specific position. Cross Margin uses your entire account balance as collateral, giving more flexibility but risking your whole account. This simulator calculates Isolated Margin.
Q. What is MMR (Maintenance Margin Rate)?
MMR is the minimum margin ratio required to keep a position open. On Binance, small positions use ~0.5% MMR, increasing with position size. This simulator defaults to 0.5% MMR.
Q. How is PnL calculated?
PnL = Position Size × Price Change % × Leverage. Example: $1,000 position at 10x leverage, price rises 5% → PnL = $1,000 × 0.05 × 10 = +$500.
Q. What liquidation distance is considered safe?
Generally: >20% distance = relatively safe; 10–20% = caution; <10% = danger. Crypto can move 10–20% in hours, so high leverage requires constant monitoring.
Q. What are the trading fees for leverage trading?
Binance Futures fees: 0.02% Maker (limit orders), 0.05% Taker (market orders). Using a referral link can give up to 20% lifetime fee discount.
How to Use
Input the current price (entry) and position size in USD. Example: BTC entry $85,000, position $1,000.
Adjust the 1x–100x slider for leverage and choose Long (buy) or Short (sell) direction.
Liquidation price, distance to liquidation (%), and required margin appear instantly. Red warning = high liquidation risk.
View the PnL curve from −10% to +10% and the side-by-side leverage comparison table (3x/5x/10x/20x).
Expert Knowledge: Leverage Simulator — Liquidation Price, PnL & Margin Calculator
Leverage trading is a double-edged sword — it amplifies both profits and losses. 10x leverage means $1,000 in margin controls a $10,000 position. This magnification works in both directions.
Understanding liquidation mechanics is fundamental to futures trading. Exchanges like Binance automatically liquidate positions when losses reach a defined threshold (maintenance margin). To protect against liquidation, traders use stop-loss orders, add margin, or reduce leverage.
Professional traders typically risk only 1-2% of their account per trade. For a $10,000 account, that's $100-200 maximum loss. They work backwards: set acceptable loss → calculate position size → determine appropriate leverage. This approach, not chasing maximum leverage, defines sustainable trading.
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