Leverage Calculator
Margin Required
Position Size from Margin
Formula
Margin = Position Size / Leverage; Liquidation (Long) = Entry x (1 - 1/Leverage); Liquidation (Short) = Entry x (1 + 1/Leverage)
Frequently Asked Questions
What is leverage in trading?
Leverage allows you to control a larger position than your capital. With 10x leverage, $1,000 in margin controls a $10,000 position. Gains and losses are both amplified.
What is liquidation?
Liquidation occurs when your unrealized losses approach your margin (collateral). The exchange automatically closes your position to prevent further losses beyond your deposited margin.
Is higher leverage always better?
No. Higher leverage amplifies both gains and losses and brings your liquidation price closer to entry. A small adverse move can wipe out your entire margin with high leverage.
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