StableX Academy

Learn crypto the right way.

114 plain-English lessons Β· 15 modules

Margin & Leverage

Margin is the collateral you post to open a leveraged position; leverage multiplies your exposure relative to that collateral.

In depth

With 5Γ— leverage, β‚Ή10,000 of margin controls a β‚Ή50,000 position, so a 2% move changes your equity by 10%. If losses eat through your margin the exchange liquidates the position automatically to protect itself. Leverage is a tool for experienced traders, not a shortcut.

Lever and fulcrum graphic: small margin block lifting a large position block, with a "liquidation" cliff edge nearby.

Why it matters

Most large trading losses in crypto come from misunderstanding leverage.