Kraken liquidation level

[WazY]

Hey

I wonder why Kraken does not show the liquidation level when making a margin trade 

Now, let assume I have 1 BTC in my account.
I made a 0.5 BTC long position with 5x leverage.
Open position: 18000
Close position: 18500

How do I calculate the liquidation level when my position is closed?

Thanks in advance.

[hd49728]

Kraken's support center.

Margin call level and margin liquidation level
Margin Level
Margin

The margin level is calculated with the formula

How Is Margin Level Calculated?
Margin level is calculated as:

Margin level = (equity ÷ used margin)×100

You can do calculation when your margin level is at 40% and less than 40% liquidation will be processed.

Margin liquidation level

The “margin liquidation level” is the margin level at which an automated liquidation process will occur. The margin liquidation level is approximately 40%, although the exact threshold varies in accordance with the price volatility in applicable markets.

[Vispilio]

Hey

I wonder why Kraken does not show the liquidation level when making a margin trade 

Now, let assume I have 1 BTC in my account.
I made a 0.5 BTC long position with 5x leverage.
Open position: 18000
Close position: 18500

How do I calculate the liquidation level when my position is closed?

Thanks in advance.

for your particular example, the liq level should be 16,200 USD for an isolated margin trade, + 1-2% of exchange margin cushion + 1-2% of borrowing costs depending on exchange's particular practices for borrowing and protection,

so for the exact details you need to read up on Kraken documentation, this is to give you a general approximate indication of what to expect...

[XZERO1]

Isn't Kraken the exchange that is famous for creating its own wicks(up or down) on its trading pairs to liquidate positions?, they have a great history of shady behaviors like that and I heard so many people got burnt because of this about a year ago or something, I think the reason behind not showing you the liquidation price is the same reason why they make their own wicks on their charts to liquidate some high leveraged whenever they feel like it.

I definitely would not use Kraken specially for leveraged trading since there are way better and more reputable exchanges for that matter and you won't need to use any formula or a calculator to know when you get liquidated while using them.

[WazY]

Thanks for your reply.

Lets assume, I have a cross margin position

A) Will there still be liquidation even if I have funds in the account? I mean if my position if 0.5 BTC with leverage 5x, and I have 0.5 BTC in account.

B) If I add more funds to the account, will my position still be liquidated?

[WazY]

I definitely would not use Kraken specially for leveraged trading since there are way better and more reputable exchanges for that matter and you won't need to use any formula or a calculator to know when you get liquidated while using them.

@XZERO1 Please advice me of a better trustworthy exchange.

[XZERO1]

Please advice me of a better trustworthy exchange.

For exchange I can suggest you Binance and Kucoin, both support trading with leverage and I tested them out both before and there was no problem with them at the time.

A) Will there still be liquidation even if I have funds in the account? I mean if my position if 0.5 BTC with leverage 5x, and I have 0.5 BTC in account.

B) If I add more funds to the account, will my position still be liquidated?

If you have a position open with 0.5 btc worth(with added 5x leverage) and your account balance is 0.5 btc then you will still have a liquidation price and you can still get liquidated so there is almost no difference between using your whole account balance which is 0.5 btc without any leverage and using 0.1 btc with 5x leverage(still 0.5 btc) and so to sum it up you can not get a different liquidation price by not using your whole account balance and instead adding leverage and the profit/loss outcome from both scenarios will be the same.

As for the second question: Your position still will be liquidated but as you add more funds to your account the liquidation price will get further away from your position and your chance of liquidation will be minimized, keep in mind that to use your account balance as a back up fund for your position you have to use cross margin

But I personally don't suggest using cross margin since it will make it a bit easier for you to lose even more money that you were initially planned to trade with, better to start with whatever you have in your account and in no way add any funds to it, do not make it too complicated at first, just use your whole account balance but with only 2x leverage at first and never increase your leverage or use cross margin at all and then as you get enough experience you can increase your leverage to 3x but it's better to not use any more leverage than that in crypto unless you really don't care about your money.