What is Leverage?
Leverageâ
Leverage is the multiplier applied to your margin when opening a position.
Higher leverage increases your market exposure, but it also increases risk because smaller price moves can create larger profit or loss changes and can move a position closer to liquidation.
Why It Mattersâ
Leverage affects position size, margin usage, and liquidation risk. Always review the leverage and liquidation price before opening or modifying a position.