SignavaThe same trade at different leverage
Same margin, same entry, exit and stop — only the leverage changes. Watch the profit grow, and the liquidation price creep towards your entry.
| Leverage | Position | PnL at exit | ROI | At stop | Liquidation |
|---|
How futures profit and ROI work
With futures you put up margin and the exchange lends you the rest, so your position size = margin × leverage. Profit and loss are worked out on the full position, which is why a small price move becomes a big ROI on your margin — in both directions.
- Long makes money when price rises; short makes money when it falls.
- ROI ≈ price move × leverage. A 3% move at 10x is about 30% on your margin; the same move against you is −30%.
- Liquidation is roughly where the loss eats your whole margin — at 10x, about a 10% move against you, minus the maintenance margin (0.5% assumed here). Your stop loss must sit before it.
- Fees are charged on the full position on entry and exit. Funding is paid between longs and shorts every 8 hours: when it's positive, longs pay and shorts receive. Read funding rates explained.
Most traders who blow up an account do it with high leverage and no stop. Size the trade from the stop first — the position size calculator does that — then choose the lowest leverage that gives you that size.
Frequently asked questions
How is futures ROI calculated?
ROI = PnL ÷ margin × 100. Because the position is margin × leverage, a 1% price move is roughly a (leverage)% ROI: 1% at 10x is about 10% on your margin, before fees.
How is futures PnL calculated?
Position size = margin × leverage. For a long, PnL = position size × (exit − entry) ÷ entry; for a short it's the reverse. Then subtract fees on both sides, which are charged on the full position size, and funding.
What leverage should a beginner use?
Low — 2x to 5x. At 50x a 2% move against you wipes out the whole margin. Pick leverage so that your stop loss is hit well before the liquidation price.
Why are futures fees bigger than they look?
Fees are charged on the whole position, not your margin. At 20x, a 0.05% fee per side costs 2% of your margin for a round trip.
