Liquidation
When you have been accumulating capital costs and rollover costs, your strong price will be close to the current market
When you profit from the cost of capital, or positioning profit, your strong price is further away from the current market
Liquidation Price Distance = Open Price * (Collateral * 0.9 - Rollover Fees - Funding Fees) / Collateral / Leverage.
Liquidation price = If Long: Open Price - Liquidation Price Distance
Else (Short): Open Price + Liquidation Price Distance.
Last updated