Guides and reference · Distance to liquidation
Guide 09 of 121 min read
Distance to liquidation
The number that says how fragile a leveraged position is, and how the radar draws it.
Good for: checking a post that says a whale is 4% from liquidation.
Say a post says a whale is 4% from liquidation. Distance to liquidation is how far the price has to move, in percent, before a position is closed by force. A long with a liquidation price 3% below the market is 3% away. A short with one 12% above has more room.
Why it matters more than leverage
Leverage alone won’t tell you how close a position is to the line. Cross-margined positions share the account’s collateral, so two with the same leverage can sit at very different distances. The liquidation price accounts for that.
How the radar uses it
It is the radius on the radar: the closer a dot to the centre, the smaller the move that liquidates it. Near liquidation lists every whale position by it, closest first.
What it won’t show
Distance describes where a position stands, not where the price goes. It moves with the price and with the account.