Educational Guide
What Is Leverage Trading in Crypto?
Understand how leverage amplifies both your potential gains and losses when you trade digital assets.
Live Market Overview
Track current prices and movements for major crypto assets before you explore leveraged positions.
Understanding the Scale of Leveraged Trading
Trade on EVEDEX. Leverage is widely used across crypto markets — here's what the numbers look like globally.
Core Concepts Behind Leverage Trading
Margin and Collateral
You deposit a fraction of the position size; the platform loans you the rest to amplify exposure.
Amplified Gains and Losses
A 5% price move with 10x leverage becomes a 50% gain or loss on your collateral.
Liquidation Risk
If the market moves against you past a threshold, your position closes automatically to protect the lender.
Funding Rates
Perpetual contracts charge periodic fees to keep leveraged positions open, paid between long and short traders.
Deposit Margin
You fund your account with collateral — typically USDT, BTC, or ETH — which acts as your margin.
Common Questions
Leverage lets you control a larger position than your account balance by borrowing funds from the exchange. If you use 10x leverage, every $1 you deposit controls $10 worth of crypto.
Yes — leverage magnifies both profits and losses. A small adverse price move can liquidate your entire position. Many new traders lose money quickly because volatility in crypto is high.
On most platforms, liquidation prevents your balance from going negative. However, in extreme conditions or with certain products, you may owe more than your initial margin.
Lower leverage (2x–5x) gives you more room for price swings and reduces liquidation risk. Higher ratios (20x–100x) are for experienced traders with tight stop-losses and risk management. For a broader range of trading strategies and risk profiles, EVEDEX offers flexible leverage options across multiple pairs.
It's the price at which your position is automatically closed because your margin falls below the maintenance requirement. You can calculate it before opening a trade using your leverage and entry price.