## Accuracy of Liquidation Price

For a more accurate liquidation price, it's recommended to refer to the official Binance Futures webpage linked within the calculator. This page allows you to select your specific trading pair and position size to find the corresponding maintenance margin rate and calculate a more precise liquidation price.

By understanding these limitations and utilizing the provided resources, you can better understand your risk exposure and make informed trading decisions on the Binance Futures platform.

By understanding these limitations and utilizing the provided resources, you can better understand your risk exposure and make informed trading decisions on the Binance Futures platform.

## Calculating Liquidation Price After Margin Adjustments

In calculating the liquidation price after adjusting your margin, you need to account for the change in leverage.

For instance, if you have a position of 14,000 USDT at 2× leverage, your margin is:

$$\text{Margin} = \frac{\text{Position}}{\text{Leverage}} = \frac{14,000}{2} = 7,000 \, \text{USDT}$$

If you add 1,000 USDT to your margin, your actual leverage shifts from 2× to 1.75×:

$$\text{New Leverage} = \frac{14,000}{7,000 + 1,000} = \frac{14,000}{8,000} = 1.75 $$

Hence, you should enter "1.75" instead of "2" in the leverage field. Entering "2" and "8,000" in the leverage and cost/margin fields, respectively, would inaccurately calculate your position size as:

$$\text{Calculated Position Size} = \text{Cost/Margin} \times \text{Leverage} = 8,000 \times 2 = 16,000 \, \text{USDT} $$

Even though your position size remains unchanged when you adjust the margin. Remember, your entry price stays the same when you adjust your margin. Thus, calculating the liquidation price after margin adjustment only reflects your margin and leverage changes.

When determining your position size, multiply your position size (in coins) by your entry price. If you're trading coin-margined futures contracts, the formula is:

$$\text{Position Size (in USD)} = \text{Size of Contract} \times \text{Value of One Contract in USD}$$

For instance, if you have a position of 14,000 USDT at 2× leverage, your margin is:

$$\text{Margin} = \frac{\text{Position}}{\text{Leverage}} = \frac{14,000}{2} = 7,000 \, \text{USDT}$$

If you add 1,000 USDT to your margin, your actual leverage shifts from 2× to 1.75×:

$$\text{New Leverage} = \frac{14,000}{7,000 + 1,000} = \frac{14,000}{8,000} = 1.75 $$

Hence, you should enter "1.75" instead of "2" in the leverage field. Entering "2" and "8,000" in the leverage and cost/margin fields, respectively, would inaccurately calculate your position size as:

$$\text{Calculated Position Size} = \text{Cost/Margin} \times \text{Leverage} = 8,000 \times 2 = 16,000 \, \text{USDT} $$

Even though your position size remains unchanged when you adjust the margin. Remember, your entry price stays the same when you adjust your margin. Thus, calculating the liquidation price after margin adjustment only reflects your margin and leverage changes.

When determining your position size, multiply your position size (in coins) by your entry price. If you're trading coin-margined futures contracts, the formula is:

$$\text{Position Size (in USD)} = \text{Size of Contract} \times \text{Value of One Contract in USD}$$

## Calculating Liquidation Price After Increasing Position Size

Suppose you have a long position leveraged at 3×3\times3× with the following values:

$$\text{New Entry Price} = \frac{(25,000 \times 1,200) + (22,000 \times 600)}{1,800} = 24,000 \, \text{USDT}$$

- Margin: 400 USDT
- Entry Price: 25,000 USDT
- Position Size: 1,200 USDT1

1. Compute the New Entry Price:

To calculate the new entry price, use the formula: $$\text{New Entry Price} = \frac{(25,000 \times 1,200) + (22,000 \times 600)}{1,800} = 24,000 \, \text{USDT}$$

- Explanation: Here, you add the product of your current position's entry price and size to that of your new order, then divide by the total position size.

2. New Liquidation Price Calculation: With the updated values:

- Margin: 600 USDT (calculated as 400+200)
- Entry Price: 24,000 USDT
- Position Size: 3×

3. Changing Leverage:

If you decide to place the new buy/long order using 4×4\times4× leverage, you need to recalculate the new entry price:

$$\text{New Entry Price} = \frac{(25,000 \times 1,200) + (22,000 \times 800)}{2,000} = 23,800 \, \text{USDT}$$

$$\text{New Entry Price} = \frac{(25,000 \times 1,200) + (22,000 \times 800)}{2,000} = 23,800 \, \text{USDT}$$

4. Calculate Real Leverage:

The real leverage falls between 3× and 4× and requires calculating the initial and new order sizes in coins:

- Initial Position Size in Coins:

$$\text{Initial Size} = \frac{1,200}{25,000} = 0.048 \, \text{BTC}$$ - New Order Size in Coins:

$$\text{New Size} = \frac{800}{22,000} \approx 0.03636 \, \text{BTC}$$ - Total Position Size in Coins:

$$\text{Total Size} = 0.048 + 0.03636 \approx 0.08436 \, \text{BTC}$$

5. Calculate Real Leverage:

The real leverage can be calculated by:

$$\text{Real Leverage} = \frac{(0.08436 \times 23,800)}{600} \approx 3.34628$$

$$\text{Real Leverage} = \frac{(0.08436 \times 23,800)}{600} \approx 3.34628$$

6. Final Liquidation Price Calculation:

With the updated values:

- Margin: 600 USDT (calculated as 400+200)
- Entry Price: 23,800 USDT
- Position Size: 3.34628×