Futures
Binance Futures Liquidation: Mark Price, Stops and Position Size
Learn how mark price and maintenance margin lead to liquidation, then calculate position size from a defined loss limit.
Binance Futures Liquidation: Mark Price, Stops and Position Size
Liquidation is not simply a fixed percentage move against your entry. It begins when position equity can no longer satisfy the maintenance margin requirement. Leverage, position size, margin mode and mark price all matter.
This guide was checked in July 2026. Contract parameters can change; use the estimated liquidation price shown on the live order screen.
Liquidation generally uses mark price
Perpetual contracts use mark price for unrealized PnL and liquidation calculations to reduce the effect of abnormal last trades. Binance explains that mark price is related to index price and funding inputs in its perpetual futures guide.
In simplified form:
- Price moves against the position.
- Unrealized loss consumes margin.
- Margin balance approaches the maintenance requirement.
- Mark price reaches the liquidation condition and the system reduces or closes the position.
Why leverage makes liquidation more likely
With 100 USDT margin at 10x, the notional position is about 1,000 USDT. A 1% adverse move creates roughly a 10 USDT loss, or about 10% of initial margin, before fees, funding and maintenance margin.
The shortcut “10x survives a 10% move” is therefore unreliable. The real liquidation distance is usually smaller and changes with the risk tier and available margin.
Cross vs isolated margin
| Mode | Funds at risk | Typical use |
|---|---|---|
| Isolated | Margin assigned to that position | Limiting one position's effect |
| Cross | Available balance shared across positions | Users monitoring total account risk |
Isolated margin contains exposure but can still lose most of the assigned margin. Cross can delay one position's liquidation while exposing more of the account.
Size the position from the loss limit
Assume a 1,000 USDT account, a maximum loss of 1% or 10 USDT, and a stop 2% from entry:
Notional position ≈ 10 ÷ 2% = 500 USDT
At 5x, initial margin is roughly 100 USDT. Leverage changes margin usage; it should not change the planned 10 USDT maximum loss.
Five checks before entry
- Cross or isolated?
- Where are mark price and estimated liquidation price?
- Is the stop before liquidation with room for slippage?
- Is planned loss within 1%–2% of the account?
- Have fees and possible funding been included?
A stop is not a guarantee
During gaps, thin liquidity or system congestion, execution can differ from the trigger price. Stops help manage risk but cannot guarantee a fixed loss. Low leverage, smaller size and spare margin still matter.
⚠️ Futures can cause rapid and substantial losses. Learn mark price, liquidation price and stop behavior with simulation or very small size first. Not investment advice.