What is leverage in futures trading?

Last updated: 2026-10-15

Leverage lets you open a position that is bigger than the margin you put in. With 10x leverage, 100 USDT of margin controls a position worth 1,000 USDT, so every price move counts ten times more for your profit and loss.

How does leverage set my margin?

Initial margin = position value / leverage. The higher your leverage, the less margin a position needs, and the less room the price has to move against you before liquidation.

• 1,000 USDT position at 2x: 500 USDT margin.
• 1,000 USDT position at 10x: 100 USDT margin.
• 1,000 USDT position at 20x: 50 USDT margin.

These numbers only show the math. The leverage you can actually use depends on the pair.

Does leverage change my profit?

Your PnL in USDT depends on the position size and the price move, not on leverage. What leverage changes is your return on margin (ROI): the same price move is a bigger percentage of a smaller margin. A 1% move against a 1,000 USDT position is a 10 USDT loss either way, but at 20x that is 20% of your 50 USDT margin.

Higher leverage moves your liquidation price closer to your entry price. A small move against you can close the position and lose its margin.

What is the maximum leverage?

Each pair has its own maximum leverage, and it gets lower as your position gets bigger. These steps are called tiers: each tier covers a range of position value and has a maximum leverage and a maintenance margin rate. You can see the tier table for every pair under Leverage & Margin on Trading rules.

If an order would make your position bigger than the tiers allow at your leverage, it is rejected with "Max position size is exceeded". Lower your leverage or the size.

Is leverage set per pair?

Yes. You choose leverage separately for each pair, and the choice is kept for your next orders on that pair. See how to change leverage.