Using Leverage Wisely
Leverage multiplies your exposure β and your risk. Hereβs how different levels of leverage impact your position size and the risk of liquidation:
π Leverage vs. Position Size
Leverage
Capital at Risk
Max Position Size
Liquidation Risk
1x
$1,000
$1,000
Low
5x
$1,000
$5,000
Moderate
10x
$1,000
$10,000
High

Liquidation occurs when your margin drops below maintenance levels.
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