Liquidation Price vs Notional Exposure

The mark price at which a leveraged position is automatically closed by the exchange to recover borrowed capital; for longs, Entry Price × (1 − 1/Leverage + Maintenance Margin Rate); for shorts, Entry Price × (1 + 1/Leverage − Maintenance Margin Rate).

The total market value of a leveraged derivatives position, calculated as margin × leverage; the correct basis for applying risk management rules to leveraged trades; a $2,000 margin position at 10x leverage carries $20,000 of notional exposure and must be risk-managed accordingly.