Your choice of leverage directly affects both the size of potential returns and risks. Register on Binance to adjust leverage on the futures page, and download the Binance APP for convenient mobile adjustments.
What Leverage Means
Assume you have 100 USDT in margin:
- 2x leverage: Opens a 200 USDT position
- 5x leverage: Opens a 500 USDT position
- 10x leverage: Opens a 1,000 USDT position
- 20x leverage: Opens a 2,000 USDT position
Higher leverage means larger profit/loss ratios from the same price movement.
How to Set Leverage
- Go to the futures trading page
- Tap the leverage number next to the trading pair name
- Drag the slider or enter your desired leverage multiplier
- Confirm the change
Leverage Recommendations
- Beginners: 2-3x, leaving plenty of room for price fluctuations
- Experienced traders: 5-10x, must be paired with strict stop-losses
- High leverage (20x and above): Extremely risky, not recommended
Relationship Between Leverage and Liquidation
Higher leverage means the liquidation price is closer to your entry price. At 10x leverage, a roughly 10% adverse move could trigger liquidation. At 100x leverage, just 1% is enough. High-leverage trades absolutely require stop-losses.