Reading liquidation distance before you add size

Adding size feels productive until the liquidation line moves closer than your stop. In a Futures Risk Review we treat the add as a separate calculator pass: current book first, then current book plus the intended add, with fees and funding included on both sheets.

Start with isolated numbers even if you trade cross margin. Enter entry, leverage, wallet equity allocated to the idea, and the venue’s maintenance rate. Note the liquidation price. Then increase contract size and watch how many ticks of buffer disappear.

If the new liquidation sits inside the zone where you usually cut losses, the add is arguing with your own risk rule. That tension is the point of the exercise — not a prediction of the next candle.