BullHow Much Leverage Should You Use in Crypto Futures?
BullCalc Team · · 2 min read
"What leverage do you use?" is one of the most asked questions in trading groups. The honest answer is that leverage on its own does not tell you much. What matters is how big the position is and where the stop loss sits.
What leverage actually does
Leverage lets you open a position larger than the margin you put up. With 10x, 100 USDT of margin controls a 1,000 USDT position. It does two things:
- It lowers the margin needed for a given position size.
- It moves the liquidation price closer to your entry.
It does not change how much you lose when your stop is hit. A 1,000 USDT position with a 2% stop loses 20 USDT at 2x or at 50x.
Where leverage gets dangerous
The danger is not the number itself, but what traders do with it. High leverage makes it easy to open positions far larger than the account can handle, and it puts liquidation so close that normal price noise can close the trade before the stop.
| Leverage | Approx. move to liquidation |
|---|---|
| 3x | ~33% |
| 5x | ~20% |
| 10x | ~10% |
| 25x | ~4% |
| 50x | ~2% |
| 100x | ~1% |
Crypto can move several percent in minutes. At 50x or 100x a single candle can liquidate a position.
A practical way to choose
- Decide your risk per trade, for example 1% of the account.
- Set the stop where the trade idea fails.
- Calculate the position size from the risk and the stop distance.
- Choose a leverage that keeps liquidation well beyond the stop, with room to spare.
The leverage calculator shows the leverage you need and the maximum that is still safe for your stop.
Lower is usually better
Using less leverage than the maximum is not a waste. It keeps more distance to liquidation, reduces the stress of every wick and gives you room if the exchange's mark price moves suddenly. Many experienced traders rarely go above 5x to 10x even though much higher is available.
Summary
- Size the position from your risk, not from your leverage.
- Leverage only decides margin and liquidation distance.
- Your stop must always be hit before liquidation.
Crypto Leverage Calculator
Work out the leverage you need for a trade and the highest leverage that is still safe for your stop loss.
Open the calculatorThis article is for education only and is not financial advice.