# Using Leverage Wisely

Leverage multiplies your exposure — and your risk. Here’s how different levels of leverage impact your position size and the risk of liquidation:

📊 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             |

<figure><img src="https://336728225-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FY9xZ4YEB8Gkv1YMYZ49T%2Fuploads%2FGAHLOWXEAqQliiQpmu2n%2FLeverage%20vs%20Position%20Size%20and%20Liquidation%20Risk.png?alt=media&#x26;token=5db2e771-e270-414a-ad86-cb6fa81866ac" alt=""><figcaption></figcaption></figure>

Liquidation occurs when your margin drops below maintenance levels.