Leverage

Leverage means controlling a position larger than your collateral. In a perpetual futures contract, the platform provides that larger exposure through its margin system; you do not apply for a normal loan.

Example: 10× leverage lets $1,000 of collateral control a $10,000 position. A 10% move against you would consume the starting collateral before fees and maintenance-margin rules.

Leverage magnifies gains and losses. A large adverse move can trigger liquidation: the platform closes the position when collateral falls below its maintenance requirement. Higher leverage leaves less room for normal price movement.

Maximum leverage is not a sensible target. Check the venue’s asset-specific limit, maintenance margin, mark price, and liquidation fee before opening a position.

See our Perpetuals category page for how to evaluate leverage limits across platforms, and our lending risk and liquidation guide for how liquidation mechanics generalize from collateralized lending to leveraged perps positions.