Liquidation Map: Where Leverage Goes Boom
How far can the price move before your leveraged trade is gone? The BOOM line shows it.
Why it helps you.
- You see the price where your money in the trade is gone, before you enter.
- You see how often trades like yours were wiped out on this chart.
- Leverage (trading with borrowed money) is explained in plain words, so you know what you are doing.
A picture of liquidation for complete beginners. Leverage means trading with borrowed money: 10x means $100 controls $1,000. Liquidation means the exchange closes your trade because your money is used up. Pick your leverage and the chart shows the "BOOM line". It is the price where a leveraged buy or sell would be liquidated. At that price the money in the trade is gone.
What you see.
- A red BOOM line for a buy and an orange one for a sell. Each has one plain sentence: "Price falls to X = your money is gone. Only -4.5% = about 4 normal candles."
- A shaded danger zone between your entry and the BOOM line. The entry is the price where you get in.
- All leverages at once: a BOOM line for 5x, 10x, 20x, 25x, 50x, 75x, 100x and 125x.
- Each line has its own colour, from yellow (far) to purple (close). Lines are solid for buys and dotted for sells. You can switch each one on or off.
- A guess of where liquidations sit, drawn as a heatmap over the chart. A heatmap colours places by how much is there. It uses the last 300 candles (you can change this).
- For each of these candles, it imagines buys and sells opened at its close. It marks where they would be liquidated, at every leverage that is on. It only marks prices that the price has not reached yet.
- Brighter yellow rows mean more trades would be liquidated there. Rows are weighted by volume (how much was traded).
- The hottest row below the price and the hottest row above it are shown with their share.
- This is a guess from this chart's prices and volume. It is not exchange data.
- A small lesson: "Leverage is like a balloon: more air, faster pop. 20x = you put in 1 and borrow 19."
- A ladder for 5x, 10x, 20x, 50x and 100x. It shows the move to liquidation. It also shows how often a trade opened at a past candle's close was liquidated within the next N candles, on this chart.
How to use.
1. Choose your leverage and side (buy or sell).
2. Type your entry, or leave it at 0 to use the current price.
3. Read where the BOOM line is and how many normal candles away it is. A normal candle is an average candle on this chart.
4. Turn on the heatmap to see guessed liquidation zones of past entries. It is a guess from this chart's own candles, not exchange data.
5. Want a clean chart? Point at the script name on the chart, open the "More" menu and pick "Move tables to bottom". The panel then moves under the chart.
How it calculates.
- It is an estimate for a linear perpetual with isolated margin. A linear perpetual is a crypto futures contract with no end date, priced in USDT. Isolated margin means only the money in this one trade can be lost.
- Buy liquidation = entry x (1 - 1/leverage + maintenance margin).
- Sell liquidation = entry x (1 + 1/leverage - maintenance margin).
- Maintenance margin is the small part of the trade that the exchange keeps as a safety buffer.
- "Normal candles" = distance / ATR(14). ATR is the average size of recent candles.
- History: it looks at the last K closed candles (default 500). For each one, it imagines a trade opened at its close.
- That trade counts as liquidated if any of the next N candles (default 24) reaches its liquidation price.
What is different.
Liquidation-line tools exist. This one is written for complete beginners. It uses plain sentences and gives the distance in normal candles. It has a leverage ladder. It shows the share of past candles on this chart that would have been liquidated.
Repainting.
Repainting means a value changes after it was shown. With the entry at 0, the BOOM line follows the current price. So it moves on the open candle. The wipe-out history and the heatmap use only candles up to the current one. Nothing uses future candles.
Limits.
- It is an estimate, not exchange data. Fees, funding, tiered margins and cross margin change the real price. Funding is a small payment between buyers and sellers every few hours.
- Pine cannot see real liquidations.
- Past candles on one chart are not a forecast.
- Not financial advice.
Why you can still trust it. It uses the standard math for these contracts and your chart's own candles. It says clearly where it is only an estimate.
Make it a habit. Before you pick a leverage, look at how close its BOOM line is.
Open source (MPL 2.0).
Why it helps you.
- You see the price where your money in the trade is gone, before you enter.
- You see how often trades like yours were wiped out on this chart.
- Leverage (trading with borrowed money) is explained in plain words, so you know what you are doing.
A picture of liquidation for complete beginners. Leverage means trading with borrowed money: 10x means $100 controls $1,000. Liquidation means the exchange closes your trade because your money is used up. Pick your leverage and the chart shows the "BOOM line". It is the price where a leveraged buy or sell would be liquidated. At that price the money in the trade is gone.
What you see.
- A red BOOM line for a buy and an orange one for a sell. Each has one plain sentence: "Price falls to X = your money is gone. Only -4.5% = about 4 normal candles."
- A shaded danger zone between your entry and the BOOM line. The entry is the price where you get in.
- All leverages at once: a BOOM line for 5x, 10x, 20x, 25x, 50x, 75x, 100x and 125x.
- Each line has its own colour, from yellow (far) to purple (close). Lines are solid for buys and dotted for sells. You can switch each one on or off.
- A guess of where liquidations sit, drawn as a heatmap over the chart. A heatmap colours places by how much is there. It uses the last 300 candles (you can change this).
- For each of these candles, it imagines buys and sells opened at its close. It marks where they would be liquidated, at every leverage that is on. It only marks prices that the price has not reached yet.
- Brighter yellow rows mean more trades would be liquidated there. Rows are weighted by volume (how much was traded).
- The hottest row below the price and the hottest row above it are shown with their share.
- This is a guess from this chart's prices and volume. It is not exchange data.
- A small lesson: "Leverage is like a balloon: more air, faster pop. 20x = you put in 1 and borrow 19."
- A ladder for 5x, 10x, 20x, 50x and 100x. It shows the move to liquidation. It also shows how often a trade opened at a past candle's close was liquidated within the next N candles, on this chart.
How to use.
1. Choose your leverage and side (buy or sell).
2. Type your entry, or leave it at 0 to use the current price.
3. Read where the BOOM line is and how many normal candles away it is. A normal candle is an average candle on this chart.
4. Turn on the heatmap to see guessed liquidation zones of past entries. It is a guess from this chart's own candles, not exchange data.
5. Want a clean chart? Point at the script name on the chart, open the "More" menu and pick "Move tables to bottom". The panel then moves under the chart.
How it calculates.
- It is an estimate for a linear perpetual with isolated margin. A linear perpetual is a crypto futures contract with no end date, priced in USDT. Isolated margin means only the money in this one trade can be lost.
- Buy liquidation = entry x (1 - 1/leverage + maintenance margin).
- Sell liquidation = entry x (1 + 1/leverage - maintenance margin).
- Maintenance margin is the small part of the trade that the exchange keeps as a safety buffer.
- "Normal candles" = distance / ATR(14). ATR is the average size of recent candles.
- History: it looks at the last K closed candles (default 500). For each one, it imagines a trade opened at its close.
- That trade counts as liquidated if any of the next N candles (default 24) reaches its liquidation price.
What is different.
Liquidation-line tools exist. This one is written for complete beginners. It uses plain sentences and gives the distance in normal candles. It has a leverage ladder. It shows the share of past candles on this chart that would have been liquidated.
Repainting.
Repainting means a value changes after it was shown. With the entry at 0, the BOOM line follows the current price. So it moves on the open candle. The wipe-out history and the heatmap use only candles up to the current one. Nothing uses future candles.
Limits.
- It is an estimate, not exchange data. Fees, funding, tiered margins and cross margin change the real price. Funding is a small payment between buyers and sellers every few hours.
- Pine cannot see real liquidations.
- Past candles on one chart are not a forecast.
- Not financial advice.
Why you can still trust it. It uses the standard math for these contracts and your chart's own candles. It says clearly where it is only an estimate.
Make it a habit. Before you pick a leverage, look at how close its BOOM line is.
Open source (MPL 2.0).
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.