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Leverage Risk Calculator

See how much a price move against you costs at a given leverage, and how close liquidation really is.

Adverse move to liquidation~9.5%
Effect on your margin
1% price move± 10% of margin
2% price move± 20% of margin
5% price move± 50% of margin
10% price move± 100% of margin

Higher leverage = a smaller move wipes you out. Size positions by risk, not by max leverage.

How to use the leverage risk calculator

Leverage turns small price moves into large changes in your margin. This calculator shows that multiplier directly: what a 1%, 2% or 5% move does to the margin, and the adverse move that ends in liquidation.

Enter the leverage and the maintenance margin rate. Use it before choosing leverage: if a normal daily move for the coin is close to the liquidation distance, the leverage is too high for that coin.

The formula

  • Change in margin ≈ price move % × leverage
  • Adverse move to liquidation ≈ (1 ÷ leverage − maintenance margin rate) × 100 %

Worked example

Leverage 10x, maintenance margin 0.5%.

  1. A 1% move changes the margin by about 10%; a 5% move by about 50%.
  2. Liquidation distance ≈ (1 ÷ 10 − 0.005) × 100 = 9.5%.
  3. At 25x the same formula gives about 3.5%, inside a single ordinary day for many altcoins.

Frequently asked questions

What leverage is safe?

No leverage is safe on its own; risk is set by position size and stop-loss. Keep the liquidation distance several times wider than your stop distance and well beyond the coin's normal daily range.

Does lower leverage reduce my profit?

Not if the position size is the same. Lower leverage only posts more margin. Profit and loss per price move depend on the position size, not on the leverage setting.

Why do altcoins need lower leverage than Bitcoin?

Altcoins usually move several times more per day than Bitcoin. The same leverage puts liquidation within a normal day's range far more often.

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Estimates for education only — not financial advice. Exchange fees, slippage and funding are not included unless stated.