RISK Leveraged products can be liquidated fast and may result in the loss of your entire margin. Educational content only — not investment advice. Read the full risk disclosure →
K KipenO EXCHANGE REVIEWS // COMPARISONS // EDUCATION

Pillar 04

Leverage & margin basics

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Leverage is borrowed exposure: it does not change whether a trade is right, only how quickly the PnL arrives relative to your collateral. 10x turns a 1% move into a 10% return — or loss — on margin. This pillar is the on-ramp for the other three: margin modes, sizing discipline, ROE and the exact distance to liquidation at each leverage tier.

leverage ratio initial margin isolated vs cross position sizing ROE on margin

Start here

// published guides first; rest in the roadmap
Basics 101

What Is Leverage in Crypto? How 10x Turns 1% into 10%

Borrowed exposure, margin as collateral, and the same trade at 1x/5x/10x/25x.

 ~8 min
Margin modes

Cross vs Isolated Margin: What Each Mode Really Exposes

Wallet balance at risk, margin sharing and which mode suits which trade plan.

 ~7 min
Sizing

Position Sizing for Futures: Risk-per-Trade Before Leverage

Decide the dollar loss you accept first; notional and leverage follow from it.

 ~9 min
Math

ROE on Margin Explained: Why Returns Look Bigger Than They Are

Percentage return on collateral vs on full notional, with fee-inclusive examples.

 ~8 min
Reference

Leverage-to-Liquidation Distance Table: How Far Price Can Move Against You

Approximate adverse-move tolerance from 2x to 125x, plus why gaps break the table.

 ~7 min
Fees

Why Fees Matter More at High Leverage: Taker, Maker and Opening/Closing Costs

Round-trip fees as a percentage of margin, and why scalping 50x starts underwater.

 ~8 min
Where to go next With margin understood, continue into liquidation mechanics or quantify holding costs with the funding rate calculator.

Open your first futures position at the smallest size available

If you are starting out, use low leverage and tiny size to feel funding deductions and margin behavior firsthand. Compare exchanges on fee tiers and maintenance-margin schedules before depositing.

Sign Up on OKX — Earn Up to 100 USDT → Affiliate link Affiliate disclosure: this site contains affiliate/sponsored links to OKX. If you sign up through them, we may earn a commission at no extra cost to you. It never changes our risk warnings: perpetuals and leverage are high-risk products — positions can be liquidated and you may lose your entire margin.