Glossary

Leverage

Holding a position bigger than your margin: at 10×, $1,000 of margin holds a $10,000 position, and every 1% the price moves is 10% of your margin.

Why it matters

Leverage multiplies gains and losses alike, and it moves the liquidation price closer: at high leverage a normal move is enough to wipe out the margin.

Related terms
Learn it in

Education only, not financial advice · All terms