BullTwo questions, one tool
Leverage needed answers: how much leverage do I have to set to open this position size with this margin? Max safe leverage answers: how high can leverage go before my liquidation price comes before my stop loss?
Formula
Example
You want a 2,000 USDT position with 200 USDT margin, so you need 10x. Your stop is 3% from the entry. With a 0.4% maintenance margin rate, the max safe leverage is 1 / 0.034 = about 29.4x. At 10x your stop will be hit long before liquidation.
Leverage is not risk
A common mistake is thinking that 5x is always safe and 50x is always dangerous. Your real risk is the position size times the stop distance. Leverage only decides how much margin is locked and where liquidation sits. Size the trade first with the position size calculator, then pick a leverage below the max safe value.
Frequently asked questions
What leverage should beginners use?
Low leverage such as 2x to 5x gives more room for mistakes. More important is risking only a small part of the account per trade.
Why does the max safe leverage include the maintenance margin rate?
The exchange liquidates you slightly before your margin hits zero. The maintenance margin rate is that buffer.
Is higher leverage cheaper?
Fees are charged on position size, so the fee is the same at any leverage for the same size.
Results are estimates for education only and are not financial advice. Always check the numbers on your exchange before you trade.
How Much Leverage Should You Use in Crypto Futures?
What leverage really does, why it is not the same as risk, and a practical way to choose a leverage level that keeps your stop loss ahead of liquidation.