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RussianLeverage in Crypto Trading: What It Is and How It Works
Leverage shows how many times a position exceeds the money behind it: at 10x, $100 of margin opens a $1,000 position.
Leverage multiplies both profit and loss. A 1% price move at 10x equals 10% of the margin, up or down.
The main danger is the liquidation price. The higher the leverage, the closer it sits to the entry, and in a fast move the position is closed before you can react.
Experienced traders rarely go above 3–5x and size positions from the stop-loss rather than from the profit they hope for. The liquidation map shows where other traders' liquidations are clustered.
See it on In-Crypto
More terms
Frequently asked questions
What leverage should a beginner use?
The lowest possible, or none. At 1–3x a position still has room for normal market swings.
How do I calculate the liquidation price?
Roughly: entry × (1 − 1/leverage) for a long and × (1 + 1/leverage) for a short. The exact price depends on fees and margin type.