What is the formula to calculate the liquidation price on Bybit?

3 answers

• TsailinJun 10, 2021 · 4 years ago
  Sure! The formula to calculate the liquidation price on Bybit is quite straightforward. It is calculated using the following formula: Liquidation Price = Entry Price / (1 - Maintenance Margin). The entry price is the price at which you entered the position, and the maintenance margin is the minimum margin required to keep the position open. When the mark price reaches the liquidation price, your position will be liquidated. It's important to keep an eye on your liquidation price to manage your risk effectively.
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• Kofoed MercadoOct 07, 2023 · 2 years ago
  Calculating the liquidation price on Bybit is crucial for risk management. The formula is simple: Liquidation Price = Entry Price / (1 - Maintenance Margin). The entry price is the price at which you entered the trade, and the maintenance margin is the minimum margin required to keep the position open. By knowing your liquidation price, you can set stop-loss orders or adjust your position size to avoid liquidation. Remember, managing risk is key to successful trading!
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• SH ZJul 29, 2024 · a year ago
  The formula to calculate the liquidation price on Bybit is Liquidation Price = Entry Price / (1 - Maintenance Margin). Bybit is a popular cryptocurrency exchange known for its advanced trading features. It offers a transparent liquidation process to ensure fair trading. It's important to understand the liquidation price as it determines the point at which your position will be automatically closed. By monitoring your liquidation price and setting appropriate stop-loss orders, you can effectively manage your risk and protect your capital.
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