The core formula
Position size = margin × leverage With the same margin, higher leverage buys more exposure, so every 1% move in price is worth more dollars to you, in both directions.Initial margin
Initial margin is what you need to open a position. Initial margin = position size ÷ leverage For example, opening a $20,000 ETH position at 20x requires $1,000 of initial margin.Maintenance margin
Maintenance margin is the minimum margin needed to keep a position open. If your margin falls below it, the position is liquidated. The maintenance margin rate depends on position size, not on the leverage you chose. Larger positions sit in higher tiers with higher maintenance rates and lower maximum leverage. This keeps very large positions from becoming a risk for the whole market.
The exact tiers for each market are shown in the order panel when you set your size.
Margin ratio
Your margin ratio shows how close you are to liquidation: Margin ratio = maintenance margin ÷ margin balance Your margin balance is your collateral plus unrealized PnL. When the ratio reaches 100%, liquidation starts. Keep it below 80%. If it climbs above that, add margin or reduce the position.Cross and isolated margin
- Cross margin shares your whole available balance across all your cross positions. Profits in one position support the others, but a large loss can draw on everything.
- Isolated margin gives each position its own fixed margin. Only that margin is at risk. You can add margin manually to move the liquidation price further away.
Choosing leverage
- Lower leverage gives your position room to breathe through normal volatility.
- Higher leverage needs tighter stops and closer monitoring.
- The fee is charged on position size, so high leverage also makes fees heavier relative to your margin.