Leverage & Margin
Leverage
Leverage in cryptocurrency trading refers to the use of borrowed funds to increase the size of a trading position, potentially amplifying both gains and losses. Traders can open positions much larger than their actual capital, allowing for greater exposure to market movements. For example, using 10x leverage on a $1,000 investment allows traders to control $10,000 worth of cryptocurrency.
Current Leverage Offering
Currently, our platform offers a maximum leverage of 3x for all trading pairs. This limit will be increased as the platform develops.
Margin
Margin is the initial amount of capital required to open a leveraged trading position. It acts as a security deposit to cover potential losses and is expressed as a percentage of the total trade size. In the example above, if a trader uses 10x leverage, the margin requirement would be 10%, or $1,000, to control a $10,000 position. Margin is critical in managing risk, as it determines the point at which positions may be liquidated to cover losses.
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