Кредитное плечо
Leverage
Leverage (margin trading) is the use of borrowed funds to increase the size of a position while committing less of your own capital. Profit and loss are calculated on the full position size.
## How it works
A trader deposits collateral (margin), and the exchange or broker provides borrowed funds to open a larger position. Leverage shows the ratio of position size to margin: at 5x leverage, the position is five times the deposited collateral. At that leverage, a one percent move in the asset's price produces roughly a five percent change in the trader's capital, in either direction.
## Where it is used
Leverage is most often used in margin trading of cryptocurrencies on centralized exchanges (CEX), in perpetual futures, and in DeFi protocols with collateralized loans. In fintech, the term also refers to debt load: the ratio of borrowed funds to the equity of a company or bank.
## What it affects
Leverage reduces a position's margin of safety. As leverage rises, the distance between the entry price and the liquidation price shrinks, so even a moderate market move can force a position to close. Borrowing fees, the funding rate, and slippage when closing during volatile moments also factor in.
## Common mistakes
Typical mistakes include opening maximum leverage without calculating the liquidation price, not accounting for the fact that margin may be shared across several positions, ignoring accumulated fees on long-held positions, and confusing isolated and cross margin. A stop order does not guarantee execution at the set price, especially in low-liquidity conditions.
## How to reduce risk
Practitioners usually size positions based on the maximum acceptable loss per trade rather than on available leverage, and check the liquidation price in advance using the exchange's calculator. It is important to understand that high leverage amplifies both gains and losses, so a strategy should take the volatility of the specific asset into account.
FAQ
What is leverage in plain terms?
It is borrowed money that lets you open a position larger than your own capital would allow. Both profits and losses scale in proportion to the leverage.
Why is high leverage dangerous in crypto?
At high leverage, a small price move can trigger liquidation, meaning the position is forcibly closed and the collateral is lost. The volatility of crypto assets makes this risk especially pronounced.
What does leverage mean in the context of banks and fintech companies?
There it usually refers to financial leverage: the ratio of borrowed funds to equity. High leverage means the company is more sensitive to losses and to deteriorating funding conditions.