Plain English
Leverage is borrowing capital to amplify the size of a trading position. 10x leverage means you control $100,000 of asset exposure with $10,000 of your own capital. The same applies to gains and losses: a 10% move in the asset is a 100% move in your equity.
How it actually works
Crypto exchanges offer leverage on perpetuals and futures, typically up to 50–100x. You post margin (collateral); the exchange extends the rest. If the position moves against you past your maintenance margin, you get liquidated — the position is forcibly closed and your margin is taken. The higher the leverage, the smaller the move needed to wipe you out.
What it means for you
For most members, leverage is the structural reason traders lose money in crypto. The math of leveraged liquidations is brutal: it compounds against you, not for you. The discipline: if you must use leverage, use the minimum that achieves your purpose, and assume the worst-case adverse move is twice what you expect.
We teach leverage as a tool to use rarely and with discipline — hedging, defined-risk structures, basis trades. Not as a way to amplify directional bets.
Educational content only. Not investment, tax, or legal advice.