Liquidation
A position is closed for you when its loss reaches the margin backing it. This page states exactly when that happens and exactly what you keep.
The formula
Demo markets use a fixed threshold, so the liquidation price is exact and you can check it yourself:
long: liquidation = entry × (1 − 0.9 / leverage)
short: liquidation = entry × (1 + 0.9 / leverage)Worked example
A 10x long on NVDA at an entry of $223.73, with $100 of margin, controls a $1,000 position.
liquidation = 223.73 × (1 − 0.9 / 10)
= 223.73 × 0.91
= $203.59
price falls 9% → position loses $90 → 90% of margin gone
you keep $10How leverage moves the line
Leverage does not change how much you can lose. It changes how small a price move is enough to lose it.
| Leverage | Move that liquidates | Margin lost |
|---|---|---|
| 2x | 45% | 90% |
| 5x | 18% | 90% |
| 10x | 9% | 90% |
| 20x | 4.5% | 90% |
| 25x | 3.6% | 90% |
At 25x, a 3.6% move against you is a total loss. Assets on this platform routinely move more than that in a day.
What you keep
The liquidation price and the amount you actually lose agree with each other. A position liquidated at the price above loses exactly 90% of its margin, and the remaining 10% is returned to your balance.
Real markets differ
On real markets the liquidation price is set by the venue's own risk engine using a maintenance margin that varies by asset and position size, not by the fixed fraction above. Your live liquidation price is always shown on the position itself. Treat the formula on this page as a good approximation there, not a guarantee.
Avoiding it
- Use less leverage. It is the only input that meaningfully moves the liquidation price.
- Add margin. More margin on the same position size pushes liquidation further away.
- Close early. A position closed at a loss you chose beats one closed at the loss the market chose.
- Watch thin markets. A market with little liquidity can move several percent on a single trade.