What is leverage?
In futures trading, leverage allows traders to magnify their position size multiple times to achieve greater returns. We offer leverage ranging from 2x to a maximum of 150x, depending on the trading pair. This means that a trader can open a new position of 1 BTC at a price of 90,000 USDT with 150x leverage while only needing 600 USDT as initial margin. However, higher leverage also comes with greater risks when the market moves against the trader's position.
Definition of Margin
When opening a position, margin is required as collateral to maintain the position or cover potential losses. Margin depends on the available assets in the futures account but is subject to restrictions based on the preferred position size.
Relationship Between Leverage and Margin
The higher the leverage, the lower the required margin. Some traders do not need high leverage to invest in multiple assets because they can use their funds to open larger position sizes within a single trade. However, higher leverage does not necessarily amplify profits or losses in proportion to larger position sizes.
How to Adjust Leverage in Futures Trading?
- Web Version: Click on "Leverage" at the top right of the futures trading page.
- Mobile App Version: Click on "Leverage" at the top of the futures trading page.
Position Tiers
Traders can check the maximum leverage multiplier for each trading pair in the position tier list. Each trading pair has a different maximum leverage, which determines position size, open orders, and new order limits when opening a trade.
Additional Notes: The available position size is subject to leverage multiplier, available funds, and maximum position limits, depending on the trading pair.