> ## Documentation Index
> Fetch the complete documentation index at: https://docs.turbo.co/llms.txt
> Use this file to discover all available pages before exploring further.

# Leverage

> How leverage multiplies a position — in both directions — and how to use it sensibly.

Leverage lets you open a position larger than the cash you put behind it. It's optional on every trade, and it changes your risk more than any other setting — worth understanding fully before you use it.

## How it works

When you open a leveraged position, you post a fraction of the position's full size as [margin](/margin), and your exposure is multiplied by the leverage you chose.

**Example:** you put \$100 behind a trade at 5x leverage. Your position is worth \$500. A 1% move in the price now moves your money by \$5 — which is 5% of your \$100. The market moved 1%; your money moved 5%.

It multiplies losses exactly the same way: at 10x, a 10% move against you wipes out the margin behind the position — see [Liquidation](/liquidation).

| Leverage | Position from \$100 | A 1% price move is | A move that risks liquidation |
| -------- | ------------------- | ------------------ | ----------------------------- |
| 1x       | \$100               | \$1 (1%)           | \~100% against you            |
| 5x       | \$500               | \$5 (5%)           | \~20% against you             |
| 10x      | \$1,000             | \$10 (10%)         | \~10% against you             |
| 20x      | \$2,000             | \$20 (20%)         | \~5% against you              |

Rough numbers — your exact liquidation price is shown on the position screen before you confirm. Each market's maximum leverage is on its trade screen.

## No options chain to learn

If you've used options for leverage, notice what's missing: no strike prices, no expiry dates, no time decay working against you. A leveraged position is just your position, bigger. The mechanics you need to understand are margin and liquidation — that's the whole list.

## Using it sensibly

* **Know your maximum loss before you trade.** On isolated-margin markets, it's exactly the margin behind the position. On cross-margin markets, losses can draw on the shared balance backing your cross positions. See [Margin](/margin).
* **Always know your liquidation price.** It's shown on the position screen before and after you confirm.
* **Pair leverage with a stop loss.** Choose your own exit before the liquidation engine chooses it for you — see [Take profit and stop loss](/take-profit-stop-loss).
* **Start lower than you think you need.** The difference between 3x and 20x is the size of the ordinary market move you can survive.

Leverage magnifies both your gains and your losses. Size positions carefully.