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What is Leverage Trading?
Leverage lets you trade with borrowed funds, amplifying both gains and losses. 10x leverage means a 10% move doubles your money — or liquidates you.
Full Explanation
Leverage trading (margin trading) allows you to control a larger position than your capital by borrowing funds from the exchange. If you have ₹10,000 and use 10x leverage, you control a ₹1,00,000 position. A 10% price move in your favor = 100% profit. But a 10% move against you = 100% loss (liquidation). Leverage is extremely risky for beginners — most leveraged traders lose money. In India, leveraged crypto trading is available on select platforms but carries significant risk.
Example
With 5x leverage and ₹1,000: you control ₹5,000 worth of BTC. If BTC rises 5%, you profit ₹250 (25% return). If BTC falls 5%, you lose ₹250. At 20% drop, you're liquidated.
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Last updated: 2026-03-21
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