This article explains how changes in leverage may affect the liquidation price in Futures Trading, for both Cross Margin Mode and Isolated Margin Mode.
Changing leverage may affect the liquidation price.
In general, the higher the leverage, the higher the liquidation risk.
When leverage is high, the liquidation price tends to move closer to the entry price (trade opening price), meaning that even small market movements may lead to liquidation.
🔍 Impact by Margin Mode
■ Isolated Margin Mode
In Isolated Margin mode, margin is managed separately for each position.
Therefore, changing leverage directly affects the liquidation price of that specific position.
■ Cross Margin Mode
In Cross Margin mode, margin is shared across the entire account.
Therefore, the liquidation price may be affected not only by leverage but also by the following factors:
・Total account margin balance
・Unrealized PnL
・Other open positions
For this reason, it is important to manage not only leverage, but also the overall margin status of your account.
⚠️ Liquidation price may change depending on market conditions and system parameters.
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