The leverage setting is not a measure of how likely a trade is to succeed.
Two numbers to keep separate
Position value is approximately quantity multiplied by price. Initial margin is collateral required to open that exposure. For a simplified example, divide the position value by the selected leverage to estimate initial margin.
The amount of price exposure drives the dollar PnL. Increasing leverage on a fixed-size position does not make each dollar of price movement worth more; it changes the relationship between collateral and exposure.
Why small moves matter
If you use a smaller margin allocation to support the same exposure, an adverse move represents a larger share of that allocation. Costs also apply to the position, so compare them with both notional value and your collateral.
Maximum leverage varies by market and position tier. A number available in one market is not a promise that it applies to another.
Using the size control
A percentage control helps translate available balance into an order amount. It is not a risk assessment. Leave room for changing prices, costs, and other obligations rather than assuming the maximum is a target.
For an open position, inspect the current settings before changing leverage. Under cross margin, the wider account matters; a leverage button alone does not describe all liquidation risk.
Same exposure, different margin
A $1,000 position at 5× has a simplified initial margin of $200. At 10× it is $100. A 2% adverse move is approximately a $20 trading loss in either case, before costs.
Illustrative figures only. Not a price forecast or trade recommendation.Further reading
Protocol details and market rules can change. Check the current specification before trading.
Educational content, not investment advice. Trading perpetuals can result in substantial loss. Market access is subject to eligibility and location. Product disclosures.