Leverage

Leverage is the ratio of notional exposure to the margin you post. The formula is: notional = margin x leverage. A $1,000 margin at 10x controls $10,000 of exposure.

Gains and losses both scale by the same multiplier. A 1% adverse move on a 10x position produces a 10% loss on margin. Because the exchange can only lose what you posted, once losses approach your margin the position is force-closed — see the liquidation calculator to find the exact price at which that happens.

Practical example: you deposit $500 and open a 20x BTC long. Notional = $10,000. A 3% drop in BTC ($300 loss) wipes 60% of your margin in one candle. Higher leverage also means the liquidation price sits closer to your entry, giving the market less room to move against you before the position is closed.

Common exchange offerings range from 1x (no leverage) to 125x. For systematic strategies, leverage is a direct input to position sizing — larger leverage requires tighter risk controls to avoid ruin. Quantle's virtual desk caps simulated leverage to keep backtests realistic. Research output only — not investment advice.