What leverage actually multiplies
Leverage multiplies your margin into a larger position. Profit and loss are calculated on that whole position, and then measured against the margin you posted, which is why a small move produces a large percentage. A 5% move at 10x is a 50% return on margin, in either direction.
Liquidation and room
The room between entry and liquidation is roughly one over the leverage, less the maintenance margin. At 5x that's about 19.5%; at 20x about 4.5%; at 50x under 2%. Crypto routinely moves more than 2% in an hour, which is why high leverage is mostly a way of paying fees to the exchange. The liquidation calculator goes deeper on that price, and the liquidations guide explains why clustered liquidations move the whole market.
Fees scale with leverage too
Trading fees are charged on the full position, not on your margin. A 0.1% fee each way is 0.2% of the position, which at 20x is 4% of your margin before the price has moved at all. Funding on a perpetual works the same way. The funding cost calculator shows what holding the position costs over time, and the position size calculator turns the question around: given the loss you'll accept, how large can the position be?
Frequently Asked Questions
The guides behind this calculator
- Position sizing Leverage as an output of the stop, not an input.
- Liquidations as a signal What clustered leverage does to price.
- Funding rates The carrying cost of a leveraged perpetual.
- Long/short ratio Which side of the market is over-leveraged.
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Formulas last reviewed 2026-09-11. Educational tool, not financial advice. Results depend entirely on the numbers you enter.