Leverage

Updated 2026-10-28

Leverage lets a futures position control more value than the money set aside for it. That money is the margin. With leverage, a small margin can hold a large position, so price moves change the margin by a larger percent, in both directions.

What leverage changes

Margin used: higher leverage needs less margin for the same position.
Liquidation price: higher leverage moves the liquidation price closer to the entry. A smaller move against the position can then wipe out its margin.
Losses and gains on margin: the same price move is a larger percent of the margin.

What leverage does not have to change is the size of a position. If size comes from a fixed risk per trade, leverage only decides how much margin the position ties up and how close liquidation is.

Using it carefully

Lower leverage leaves more distance between the stop loss and the liquidation price. A stop loss that sits beyond the liquidation price is useless, because the position would be liquidated first. Exchanges set a maximum leverage per symbol, often lower for large positions.

On Algonney

Leverage is available on USDT perpetual futures, not on spot. Your plan sets the highest leverage you can choose, the exchange may cap it lower per symbol, and leverage is set per exchange account. Leverage never changes the size of a position, only its margin and liquidation price. Before every futures entry the stop loss must sit inside the estimated liquidation price, or the trade is refused.