What is Leverage?
Borrowing funds to enlarge a position and potential returns.
Details
Leverage lets you control a larger position with a smaller amount of capital — for example, 10x leverage controls ten times your margin. It scales returns and losses equally, so a modest adverse price move can wipe out the whole margin. Always set stop-losses and know your liquidation price before using leverage.
Key Points
- Control a bigger position with less capital
- A small adverse move can erase the whole margin
- Set stop-losses and know the liquidation price
FAQ
What is Leverage?
Borrowing funds to enlarge a position and potential returns.
What are the key points about Leverage?
Leverage lets you control a larger position with a smaller amount of capital — for example, 10x leverage controls ten times your margin. It scales returns and losses equally, so a modest adverse price move can wipe out the whole margin. Always set stop-losses and know your liquidation price before using leverage.
Is this term related to a specific coin?
It applies broadly across the crypto industry.
Related
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Risk warning: crypto prices are volatile. This page is for information only and is not investment advice.