docs/leverage.md: Added freqtrade_liquidation_price formula to docs

4 years ago · 8a9c6e27a5
parent c9988e0aa2
commit 8a9c6e27a5
1 changed files with 7 additions and 2 deletions
--- a/docs/leverage.md
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@ -70,9 +70,14 @@ One account is used to share collateral between markets (trading pairs). Margin
 ```

 ## Understand `liquidation_buffer`
-*Defaults to `0.05`.*
+*Defaults to `0.05`*

-A ratio specifying how large of a safety net to place between the liquidation price and the stoploss to prevent a position from reaching the liquidation price
+A ratio specifying how large of a safety net to place between the liquidation price and the stoploss to prevent a position from reaching the liquidation price.
+This artificial liquidation price is calculated as 
+
+`freqtrade_liquidation_price = liquidation_price ± (abs(open_rate - liquidation_price) * liquidation_buffer)`
+- `±` = `+` for long trades
+- `±` = `-` for short trades

 Possible values are any floats between 0.0 and 0.99