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, βΉ10,000 of margin controls a βΉ50,000 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.
Why it matters
Most large trading losses in crypto come from misunderstanding leverage.