What is leverage
Leverage multiplies your market exposure. With 10x leverage, a 1,000 position. This amplifies both gains and losses proportionally.| Margin | Leverage | Position size | 1% price move PnL |
|---|---|---|---|
| $100 | 1x | $100 | $1 |
| $100 | 5x | $500 | $5 |
| $100 | 10x | $1,000 | $10 |
| $100 | 20x | $2,000 | $20 |
How to set leverage
Click the leverage button in the trade panel (it shows your current leverage like “20x”). A dialog opens where you can adjust the slider from 1x to the maximum allowed for the selected asset. Leverage is set per asset. Changing leverage on BTC does not affect your ETH leverage.Margin modes
Faction Trade offers two margin modes. You can switch between them using the margin mode selector in the trade panel.- Cross margin
- Isolated margin
Your entire available balance acts as collateral for all open positions. If one position moves against you, your other available funds help prevent liquidation.Pros: Lower liquidation risk, margin is shared across positions.Cons: A large losing position can affect your entire account balance.
Liquidation
Liquidation happens when your margin can no longer sustain the losses on a position. The exchange force-closes the position to prevent further losses. How to reduce liquidation risk:- Use lower leverage — more margin relative to position size means a wider buffer
- Set a stop loss to exit before liquidation
- Monitor your liquidation price shown in the positions panel
- In cross margin mode, keep additional funds in your account as a buffer