High Risk Warning
Leverage trading can result in significant losses. Never trade with money you cannot afford to lose. Over 70% of retail traders lose money with leverage.
What is Leverage Trading?
Leverage trading allows you to control a larger position than your actual capital by borrowing funds. With 10x leverage, $1,000 controls a $10,000 position. Profits AND losses are multiplied.
$1,000
Your Capital
10x
Leverage
$10,000
Position Size
Leverage Simulator
See how leverage amplifies both profits and losses in real-time
Position Size
$10,000
Price Change
+0.00%
P&L
+0.00 USD
Equity
$0
Your entire position has been liquidated. You lost all your capital.
Leverage Comparison
| Leverage Level | Position ($1K) | +5% Move | -5% Move | Liq. % |
|---|---|---|---|---|
| 2x | $2,000 | +$100 | $-100 | 50% |
| 5x | $5,000 | +$250 | $-250 | 20% |
| 10x | $10,000 | +$500 | $-500 | 10% |
| 25x | $25,000 | +$1250 | $-1000 | 4% |
| 50x | $50,000 | +$2500 | $-1000 | 2% |
| 100x | $100,000 | +$5000 | $-1000 | 1% |
Risk Management Tips
Use Stop-Losses
Always set a stop-loss to limit your maximum loss. Never trade without one.
Start with Low Leverage
Begin with 2x-5x leverage until you understand the risks. High leverage is for experts only.
Risk Only 1-2% Per Trade
Never risk more than 1-2% of your total capital on a single trade.
Avoid Overleveraging
More leverage doesn't mean more profit. It means faster liquidation in volatile markets.
Pros and Cons
Advantages
- Amplify profits with limited capital
- Ability to short and profit from drops
- Capital efficiency for hedging
- More trading opportunities
Disadvantages
- Losses are also amplified
- Risk of total liquidation
- Funding fees eat into profits
- Emotional stress and pressure
Key Takeaways
Leverage multiplies both gains AND losses - use it wisely
Higher leverage = lower liquidation threshold = higher risk
Always use stop-losses and never risk more than 1-2% per trade
Start with spot trading before attempting leverage
Best Exchanges for Leverage Trading
Trade with up to 100x leverage on these trusted platforms
Ready to Trade with Leverage?
Start small, use stop-losses, and never risk more than you can afford to lose
Start Trading on Bybit