📈 What Is Margin Trading?
Margin trading allows you to trade with borrowed funds, giving you access to larger position sizes than your actual account balance. This lets you amplify potential gains, but also increases risk.
Instead of using only your own funds, you're borrowing capital from the exchange to increase your position size.
⚖️ What Is Leverage?
Leverage is the ratio between your actual investment (collateral) and the total position size.
For example, using 100x leverage, a $500 balance allows you to open a position worth $50,000.
Leverage in crypto markets usually ranges from 2x to 100x.
You can use leverage to trade both long and short positions, meaning you can profit in both rising and falling markets.
⚠️ What Is Liquidation?
To keep a leveraged trade open, you need to maintain a certain margin (called maintenance margin) in your account.
If your account balance falls below this required level:
Your position will be liquidated.
You’ll lose the margin used as collateral.
Liquidation Price is the price at which your position is automatically closed due to insufficient margin.
*Higher leverage = more borrowed funds = higher liquidation risk.
🔄 Isolated vs. Cross Margin
Isolated Margin
Margin is limited to a specific position only.
If the position is at risk, it won't affect the rest of your balance.
You can add or remove margin manually for better control.
Cross Margin
Uses your entire account balance to support open positions.
If one position is at risk, funds will be pulled from your remaining balance to prevent liquidation.
Offers more flexibility, but increases risk across your account.
ℹ️ Max Leverage by Exchange
Actual leverage availability may vary depending on the symbol and exchange. Here are a few examples by exchange:
125x
100x
100x
