Glossary / Leverage

Leverage

Leverage lets you trade with borrowed money, for example 10x means a 1% move changes your position by 10%.

Why it matters

It multiplies losses as much as gains and can wipe out a position fast.

See what top traders hold

Related terms

LiquidationA liquidation is when an exchange force-closes a leveraged position because its losses rea…Perpetual futures (perps)Perps are futures contracts with no expiry date that let traders bet on prices going up (l…MarginMargin is the collateral you put up to open a leveraged trade.…

Written by the VaultX AI team. Educational only, not investment advice.

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