What leverage does
Leverage lets you open a position larger than the margin you post. With 10x leverage, 1,000 USDC of margin controls a 10,000 USDC position. Every 1% move in price changes your profit or loss by 100 USDC, which is 10% of your margin.
| Leverage | Margin for a 10,000 USDC position | Price move that wipes out the margin |
|---|---|---|
| 2x | 5,000 USDC | about 50% |
| 10x | 1,000 USDC | about 10% |
| 50x | 200 USDC | about 2% |
| 100x | 100 USDC | about 1% |
Initial and maintenance margin
- Initial margin is what you need to open a position. It equals position value ÷ leverage, and at least the market’s minimum (for example 1% for BTC, which is why its maximum leverage is 100x).
- Maintenance margin is the minimum you must keep to avoid liquidation. It is lower than the initial margin: 0.6% of position value for BTC, ETH and SOL.
- Very large positions need proportionally more margin, so the maximum usable leverage falls as a position grows.
- Free collateral is what remains for new trades or withdrawals: your total collateral value (including unrealized PnL) minus the initial margin of your positions and open orders.
Account margin ratio
Margin ratio = total collateral value ÷ total position value
With no open positions it shows 1000%. As losses grow or positions get bigger, it falls. If it drops below the maintenance margin, liquidation starts.
Cross margin vs isolated margin
| Cross margin | Isolated margin | |
|---|---|---|
| Margin | Your whole balance backs all cross positions | Each position has its own margin |
| Liquidation | One account-level liquidation price | Each position has its own liquidation price |
| Worst case | Losses can use your whole cross balance | Loss is capped at the margin you assigned |
| Best for | Hedged or multi-position strategies | Higher-risk trades you want to ring-fence |
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