Margin is not the same as position size
At entry, a $1,000 position at 5× leverage requires about $200 of margin before costs. At 10×, that same position requires about $100. A 1% price move changes either position’s price P&L by about $10. Changing the leverage number while holding position size fixed does not multiply that dollar move.
If you instead hold margin fixed and raise leverage, you increase exposure. That larger position magnifies dollar gains and losses. In Gobi, compare “Amount you put up” with “Total exposure” on the ticket.
Why liquidation can happen before zero
Initial margin is needed to open a position. Maintenance margin is the minimum support required to keep it open. Liquidation can begin when equity falls below that requirement, while some collateral remains. It is not simply the point at which losses equal your starting margin.
A simplified threshold example
Start with $200 of isolated virtual margin. Suppose the applicable maintenance requirement at the moment is $50. A $150 unrealized loss would bring the remaining equity to that threshold, before fees and funding. Actual requirements change with the market and position value, so this is not a formula for your liquidation price.
Hyperliquid bases liquidations on mark price, rather than a single last trade. Funding and other cross positions can move the liquidation threshold. See Hyperliquid’s liquidation documentation for the venue’s rules. Gobi shows liquidation information as part of its simulation.
Cross margin and isolated margin
- Isolated margin
- Collateral is allocated to a particular position. That allocation defines its liquidation support, separate from other positions. Adding more collateral increases the amount committed to it.
- Cross margin
- Eligible positions share a collateral pool. Losses on one can reduce the support available to others. A single position’s margin number does not describe all the shared collateral at risk.
Available modes and shared pools depend on the market and account configuration. Gobi may show a margin mode as locked when the market or existing exposure restricts it. Read the ticket rather than assume every market supports both modes. For the general distinction, see Hyperliquid’s margin documentation.
At a fixed position size, lowering the leverage setting on a cross position does not by itself add equity to the shared pool or necessarily move liquidation away.
A stop-loss is different from liquidation
A stop-loss is an order intended to exit after a chosen trigger. Liquidation is enforced by the margin rules. For a long, a protective stop is usually below the current price and above the liquidation estimate; for a short, those price directions reverse.
A stop does not guarantee the exact exit price or that a position cannot be liquidated. Fast moves, liquidity, and execution rules matter. Use Gobi to observe the distinction, with virtual funds, without treating a simulated fill as an execution guarantee.
A margin check before a virtual trade
- Identify the full exposure, margin allocation, and margin mode.
- Check the liquidation estimate and how far the mark price is from it.
- Review fees, funding, and any other positions sharing collateral.
- Decide when the exercise ends before confirming the trade.
Follow the first trade walkthrough, then use the position guide to review what changed.
Adapted from Gobi’s in-app lessons and practice flows. Examples are educational and use virtual funds. They are not investment advice or forecasts.