Liquidation is not a stop
A stop is an exit instruction. Liquidation is the venue protecting borrowed capital when your margin no longer covers its risk. It can include fees, slippage and a fill far from the last price on screen.
The exact level depends on initial margin, maintenance margin, contract type, fees and venue rules. A generic calculator can help, but the trading venue’s documentation is authoritative.
Calculate damage before entry
A defensible trade first defines how many euros it can lose, then where the idea is invalidated, and only then calculates size. Leverage is a consequence of size, not the starting point.
- Maximum tolerable loss per trade.
- Distance from entry to invalidation.
- Funding costs and fees.
- Gap or thin-liquidity scenario.
A sober rule
If an ordinary move in the asset can liquidate you, the position is designed around optimism. Reduce size, add margin or do not trade. Surviving a wrong thesis is part of the system.