diff --git a/freqtrade/freqtradebot.py b/freqtrade/freqtradebot.py
index 7e826d19e..3c1122c9a 100644
--- a/freqtrade/freqtradebot.py
+++ b/freqtrade/freqtradebot.py
@@ -22,7 +22,6 @@ from freqtrade.edge import Edge
 from freqtrade.enums import (
     ExitCheckTuple,
     ExitType,
-    MarginMode,
     RPCMessageType,
     SignalDirection,
     State,
@@ -43,6 +42,7 @@ from freqtrade.exchange import (
     timeframe_to_next_date,
     timeframe_to_seconds,
 )
+from freqtrade.leverage.liquidation_price import update_liquidation_prices
 from freqtrade.misc import safe_value_fallback, safe_value_fallback2
 from freqtrade.mixins import LoggingMixin
 from freqtrade.persistence import Order, PairLocks, Trade, init_db
@@ -2157,44 +2157,6 @@ class FreqtradeBot(LoggingMixin):
     # Common update trade state methods
     #
 
-    def update_liquidation_prices(self, trade: Optional[Trade] = None):
-        """
-        Update trade liquidation price in isolated margin mode.
-        Updates liquidation price for all trades in cross margin mode.
-        TODO: this is missing a dedicated test!
-        """
-        if self.exchange.margin_mode == MarginMode.CROSS:
-            total_wallet_stake = 0.0
-            if self.config["dry_run"]:
-                # Parameters only needed for cross margin
-                total_wallet_stake = self.wallets.get_total(self.config["stake_currency"])
-            logger.info("Updating liquidation price for all open trades.")
-            for t in Trade.get_open_trades():
-                # TODO: This should be done in a batch update
-                t.set_liquidation_price(
-                    self.exchange.get_liquidation_price(
-                        pair=t.pair,
-                        open_rate=t.open_rate,
-                        is_short=t.is_short,
-                        amount=t.amount,
-                        stake_amount=t.stake_amount,
-                        leverage=trade.leverage,
-                        wallet_balance=total_wallet_stake,
-                    )
-                )
-        elif trade:
-            trade.set_liquidation_price(
-                self.exchange.get_liquidation_price(
-                    pair=trade.pair,
-                    open_rate=trade.open_rate,
-                    is_short=trade.is_short,
-                    amount=trade.amount,
-                    stake_amount=trade.stake_amount,
-                    leverage=trade.leverage,
-                    wallet_balance=trade.stake_amount,
-                )
-            )
-
     def update_trade_state(
         self,
         trade: Trade,
@@ -2272,7 +2234,13 @@ class FreqtradeBot(LoggingMixin):
                 # TODO: Margin will need to use interest_rate as well.
                 # interest_rate = self.exchange.get_interest_rate()
                 try:
-                    self.update_liquidation_prices(trade)
+                    update_liquidation_prices(
+                        trade,
+                        exchange=self.exchange,
+                        wallets=self.wallets,
+                        stake_currency=self.config["stake_currency"],
+                        dry_run=self.config["dry_run"],
+                    )
                 except DependencyException:
                     logger.warning("Unable to calculate liquidation price")
                 if self.strategy.use_custom_stoploss:
diff --git a/freqtrade/leverage/liquidation_price.py b/freqtrade/leverage/liquidation_price.py
new file mode 100644
index 000000000..b1647efd2
--- /dev/null
+++ b/freqtrade/leverage/liquidation_price.py
@@ -0,0 +1,56 @@
+import logging
+
+from freqtrade.enums import MarginMode
+from freqtrade.exchange import Exchange
+from freqtrade.persistence import LocalTrade, Trade
+from freqtrade.wallets import Wallets
+
+
+logger = logging.getLogger(__name__)
+
+
+def update_liquidation_prices(
+    trade: LocalTrade,
+    *,
+    exchange: Exchange,
+    wallets: Wallets,
+    stake_currency: str,
+    dry_run: bool = False,
+):
+    """
+    Update trade liquidation price in isolated margin mode.
+    Updates liquidation price for all trades in cross margin mode.
+    TODO: this is missing a dedicated test!
+    """
+    if exchange.margin_mode == MarginMode.CROSS:
+        total_wallet_stake = 0.0
+        if dry_run:
+            # Parameters only needed for cross margin
+            total_wallet_stake = wallets.get_total(stake_currency)
+
+        logger.info("Updating liquidation price for all open trades.")
+        for t in Trade.get_open_trades():
+            # TODO: This should be done in a batch update
+            t.set_liquidation_price(
+                exchange.get_liquidation_price(
+                    pair=t.pair,
+                    open_rate=t.open_rate,
+                    is_short=t.is_short,
+                    amount=t.amount,
+                    stake_amount=t.stake_amount,
+                    leverage=trade.leverage,
+                    wallet_balance=total_wallet_stake,
+                )
+            )
+    elif trade:
+        trade.set_liquidation_price(
+            exchange.get_liquidation_price(
+                pair=trade.pair,
+                open_rate=trade.open_rate,
+                is_short=trade.is_short,
+                amount=trade.amount,
+                stake_amount=trade.stake_amount,
+                leverage=trade.leverage,
+                wallet_balance=trade.stake_amount,
+            )
+        )
diff --git a/freqtrade/optimize/backtesting.py b/freqtrade/optimize/backtesting.py
index 75c0ac075..0d7967762 100644
--- a/freqtrade/optimize/backtesting.py
+++ b/freqtrade/optimize/backtesting.py
@@ -37,6 +37,7 @@ from freqtrade.exchange import (
 )
 from freqtrade.exchange.exchange import Exchange
 from freqtrade.ft_types import BacktestResultType, get_BacktestResultType_default
+from freqtrade.leverage.liquidation_price import update_liquidation_prices
 from freqtrade.mixins import LoggingMixin
 from freqtrade.optimize.backtest_caching import get_strategy_run_id
 from freqtrade.optimize.bt_progress import BTProgress
@@ -700,16 +701,12 @@ class Backtesting:
 
             if not (order.ft_order_side == trade.exit_side and order.safe_amount == trade.amount):
                 # trade is still open
-                trade.set_liquidation_price(
-                    self.exchange.get_liquidation_price(
-                        pair=trade.pair,
-                        open_rate=trade.open_rate,
-                        is_short=trade.is_short,
-                        amount=trade.amount,
-                        stake_amount=trade.stake_amount,
-                        leverage=trade.leverage,
-                        wallet_balance=trade.stake_amount,
-                    )
+                update_liquidation_prices(
+                    trade,
+                    exchange=self.exchange,
+                    wallets=self.wallets,
+                    stake_currency=self.config["stake_currency"],
+                    dry_run=self.config["dry_run"],
                 )
                 self._call_adjust_stop(current_date, trade, order.ft_price)
                 # pass