Leverage & Margin Calculator
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What is Futures Trading?
Futures trading allows you to buy or sell cryptocurrencies at a predetermined price on a future date. Unlike spot trading, futures trading uses leverage, which means you can control a larger position with a smaller amount of capital.
Learn more about futures trading →Key Terms
Position Size
The total value of your trade in USDT. This is the notional value of your position.
Leverage
A multiplier that allows you to control a larger position with less capital. For example, 10x leverage means you can control $10,000 worth of assets with just $1,000.
Position Side
Long: You profit when the price rises. You buy at the entry price and sell at a higher price. Short: You profit when the price falls. You sell at the entry price and buy back at a lower price.
Entry Price
The price at which you open your position. This is the price you agree to buy or sell the asset.
Required Margin
The collateral you deposit with the exchange to open a leveraged position. It acts as a security deposit that protects against losses. Margin = Position Size ÷ Leverage. This is your own capital that you risk in the trade.
Liquidation Price
The price at which your position will be automatically closed when losses exceed your margin. Higher leverage means less margin required, but the liquidation price is closer to your entry price. For example, with 10x leverage, liquidation can occur if the price moves about 10% against you. Conversely, lower leverage requires more margin but moves the liquidation price further from entry, reducing risk.
PnL (Profit and Loss)
The profit or loss from your position based on the difference between the current price and your entry price.
Examples
Example 1: Position Size and Margin
Let's say you want to trade with a position size of 10,000 USDT using 10x leverage.
Position Size: 10,000 USDT
Leverage: 10x
Required Margin: 10,000 ÷ 10 = 1,000 USDT
This means you only need 1,000 USDT of your own capital to control a 10,000 USDT position. The remaining 9,000 USDT is borrowed through leverage.
Example 2: Liquidation and PnL (Long Position)
You open a Long position with the following parameters:
Position Size: 10,000 USDT
Leverage: 10x
Required Margin: 1,000 USDT
Entry Price: 50,000 USDT
Position Side: Long
PnL Calculation (Long Position):
PnL = (Current Price - Entry Price) × Position Size / Entry Price
PnL % = (PnL / Required Margin) × 100
When PnL reaches -100%, it means your loss equals your entire margin. At this point, you can no longer maintain the position, so it will be automatically liquidated to prevent further losses.
Liquidation Price Calculation:
Liquidation Price = Entry Price × (1 - 1/Leverage)
Liquidation Price = 50,000 × (1 - 1/10)
Liquidation Price = 50,000 × 0.9 = 45,000 USDT
Verification: PnL at Liquidation Price:
PnL = (45,000 - 50,000) × 10,000 / 50,000
PnL = -5,000 × 0.2 = -1,000 USDT
PnL % = (-1,000 / 1,000) × 100 = -100%
As calculated, when the price drops to 45,000 USDT, the PnL becomes -100%, and the position is liquidated.