Glossary
What is leverage in crypto trading?
Also called: margin multiplier, gearing
Updated Ninja Terminal team
Definition
Leverage is the ratio between the notional size of a position and the margin that backs it. At 10x leverage, 1,000 USD of margin controls a 10,000 USD position. Leverage multiplies both gains and losses on the margin, and a higher setting moves the liquidation price closer to your entry price.
Leverage does not change the price of the asset. It changes how much of your collateral is exposed to each price move.
How does it work?
leverage = notional value / margin
Example: you post 1,000 USD of margin at 10x and hold a 10,000 USD long.
- Price rises 1%: the position gains 100 USD, which is 10% of the margin.
- Price falls 1%: the position loses 100 USD, which is 10% of the margin.
- Price falls about 9.5% or more: the position is near liquidation, depending on the maintenance margin rate and fees.
What limits does the venue set?
Each market has a maximum leverage, and larger positions can have lower limits. Hyperliquid sets the maximum per asset and documents a range from 3x to 40x. Leverage there is a whole number from 1 up to that maximum. Other venues publish limits in their contract specifications.
The setting also decides the required initial margin and interacts with the margin mode.
Where does it appear in Ninja Terminal?
The order form has a leverage control and a leverage dialog for supported markets. Quick Entry checks liquidation distance and margin ratio before it places an order. These checks do not remove the risk of loss.
Ninja Terminal does not give investment advice. Choose leverage that fits your own risk limits.
Frequently asked questions
Does higher leverage mean higher profit?
It means larger gains and larger losses on the same margin. It also moves the liquidation price closer to your entry.
What is the maximum leverage on crypto perpetuals?
It depends on the venue, the market, and the position size. Check the contract specification for each market.