Perpetual futures let you use leverage: you open a larger position with less margin. Leverage magnifies the position value, so profits and losses are both magnified by the same multiple.
Margin and position size
Position value = margin × leverage.
Example: with 100 USDT of margin and 10x leverage, you can open a 1,000 USDT position. If the price moves 1% in your favor, you gain about 10 USDT, which is 10% of your margin; if it moves 1% against you, you lose about 10 USDT.
Higher leverage, closer liquidation price
For the same position, this is roughly how far the price can move against you before you may be liquidated (a simplified estimate with a 0.5% maintenance margin rate, excluding fees and funding):
- 5x: about 19.5%
- 10x: about 9.5%
- 20x: about 4.5%
- 50x: about 1.5%
The higher the leverage, the less room there is for price swings, and an ordinary pullback can be enough to trigger liquidation. For the full formula, see how the liquidation price is calculated.
Leverage range on Akunosai
Maximum leverage differs by contract: up to 125x for BTC, up to 100x for ETH, and between 10x and 75x for most other contracts. The larger the position value, the higher its risk limit tier and the higher the maintenance margin rate. Choose your leverage on the order panel before you place an order; the panel shows the estimated liquidation price.
How beginners should choose
- First use the 10,000 virtual USDT on the futures demo account to open a position at a few different leverage levels, and compare how profit, loss and the liquidation price change.
- Start with low leverage, for example 2x to 5x, and only consider changing it once you are comfortable.
- Set a stop-loss every time you open a position, and decide in advance the most you are willing to lose on a single trade.
- Only trade with money you can afford to lose.
Your margin mode also affects risk; see isolated vs cross margin. To test your leverage habits in a risk-free setting, you can join a demo trading contest.