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Crypto Leverage Trading: A Complete Guide

Understand leverage trading in crypto. Learn about margin, liquidation, and how to use 10x-100x leverage safely on perpetual DEXes.

Leverage trading allows you to control a larger position with a smaller amount of capital. On oklong, you can trade with up to 100x leverage on crypto perpetuals.

Understanding Leverage

Leverage is expressed as a multiplier (e.g., 10x, 50x, 100x). Here's what it means in practice:

  • 10x leverage: $100 controls a $1,000 position
  • 50x leverage: $100 controls a $5,000 position
  • 100x leverage: $100 controls a $10,000 position

Margin and Liquidation

When trading with leverage, your deposited funds serve as "margin" - collateral for your position. If the market moves against you enough to deplete your margin, your position gets liquidated.

Liquidation Example

With 100x leverage on a $10,000 BTC long position ($100 margin):

  • A 1% price increase = $100 profit (100% return on margin)
  • A 1% price decrease = $100 loss (100% loss, liquidation)

Risk Management Tips

  • Start with lower leverage (5-10x) until experienced
  • Always use stop-loss orders
  • Never risk more than you can afford to lose
  • Consider isolated margin to limit losses to one position

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