Leverage: definition and meaning
Leverage lets you open a position larger than your own capital by borrowing, which multiplies both gains and losses.
Why it matters
High leverage can wipe out your margin quickly.
Related terms
- Margin
Margin is the collateral you put up to open and maintain a leveraged position.… - Liquidation
Liquidation is the forced closing of a leveraged position when your margin can no longer c…
Guides that explain more
- Spot vs Futures Trading: What's the Difference?
- What Is Leverage in Crypto Trading?
- What Is Liquidation in Futures Trading?
Educational content only, not financial advice.