What Is Leverage?

Borrowed buying power that lets you control a position larger than your capital. With 10x leverage, 100 USDT of margin controls a 1,000 USDT position. Leverage multiplies both profits and losses by the same factor, and it shrinks the distance to your liquidation price.

Related Terms

  • Margin The collateral you post to open and maintain a leveraged position.
  • Liquidation The forced closure of a leveraged position when your margin can no longer cover the losses.
  • Position Size The total notional value of your trade, calculated as margin multiplied by leverage.

Where You Will Meet This Term

You will run into leverage constantly on any futures exchange, from the order panel to the position dashboard. If you are still building your foundation, our guides on leverage, liquidation and risk management connect the vocabulary into an actual trading process, and the full glossary covers every other term you will encounter.