Is the Liquidation Price the Same for All Traders with the Same Leverage? ⎊ Path

Is the Liquidation Price the Same for All Traders with the Same Leverage?

No, the liquidation price is not necessarily the same, even for traders with the same leverage. It depends on factors like their entry price, the specific margin type used (isolated vs. cross), and the cumulative effect of fees and funding payments.

These small differences mean each position has a unique liquidation price.

Explain the Difference between ‘Isolated Margin’ and ‘Cross Margin’

What Is the Role of the ‘Mark Price’ in Determining the Liquidation Price?

How Does ‘Margin’ Requirement Differ between an Isolated Margin and a Cross Margin Account?

How Does an Exchange Calculate the Maintenance Margin for Isolated Vs. Cross Margin?

What Is ‘Cross Margin’ versus ‘Isolated Margin’ in Relation to Margin Calls?

How Does Cross-Margin Differ from Isolated Margin in Derivatives Trading?

Distinguish between Cross-Margin and Isolated-Margin Collateral Models on DEXs

What Is the Difference between Cross-Margin and Isolated Margin in the Context of Liquidation Risk?

Glossar

Liquidation Price

Trigger ⎊ The Liquidation Price is the specific market price level at which a trader's margin equity falls to the maintenance margin threshold, causing the exchange or protocol to automatically close the leveraged position to prevent the account balance from falling into negative territory.