SignavaWhat leverage means
With 10x leverage, $100 of your money (the margin) controls a $1,000 position. If the price moves 1% in your favour you make $10 — 10% on your margin. If it moves 1% against you, you lose $10.
What liquidation is
If the loss grows until your margin can't cover it, the exchange liquidates — force-closes — the position. Roughly:
| Leverage | Move against you that liquidates (approx.) |
|---|---|
| 2x | ~49% |
| 5x | ~19% |
| 10x | ~9.5% |
| 20x | ~4.5% |
| 50x | ~1.5% |
| 100x | ~0.5% |
The exact number depends on the exchange's maintenance margin. Use our liquidation price calculator for any trade.
Isolated vs cross margin
- Isolated — only the margin you assign to that position can be lost. Safer and easier to reason about.
- Cross — your whole futures balance backs every position. A bad trade can drain money meant for others.
The one rule that matters
Your stop loss must be hit before your liquidation price. Work out the position size from the stop (see the position size calculator), then pick the lowest leverage that lets you open it with the margin you're willing to post.
Frequently asked questions
What leverage should a beginner use?
None — start on spot. When you move to futures, 2–3x with a stop loss is plenty.
What is a liquidation price?
The price at which your position's losses use up its margin, so the exchange closes it. With 10x leverage that's roughly a 10% move against you, minus a small maintenance margin.
