Free crypto tool
Leverage Calculator
Turn your margin and leverage into position size, and see exactly how much a price move swings your margin.
Position size
$10,000
from $1,000 margin at 10x
P&L on 1% move
±$100
Required margin
10.0%
Liq. move (approx)
~10.0%
How leverage works
Leverage multiplies your margin into a larger position: position size = margin × leverage. So $1,000 of margin at 10x controls a $10,000 position. The catch is symmetry, that same 10x turns a 1% price move into a 10% swing on your margin, up or down.
The higher the leverage, the smaller the adverse move needed to wipe you out, roughly 1 / leverage. At 20x, about a 5% move against you erases the margin. That is why experienced traders use leverage to post less collateral, not to take more risk than their plan allows.
Whatever leverage you choose, the danger is not watching the position. Otomato monitors your leveraged positions and alerts you as they approach liquidation.
The complete guide
What leverage actually does
Leverage lets a small amount of margin control a much larger position. Post $1,000 at 10x and you are trading a $10,000 position. Your profit and loss are calculated on the full position, not your margin, which is why leverage feels powerful and why it is dangerous.
The mirror of that power is sensitivity: at 10x, a 1% move in the market is a 10% move on your margin. The calculator makes this concrete by showing the dollar swing for any price move you test.
Leverage and the liquidation line
The higher the leverage, the less room the market has to move against you before your margin is gone. As a rough guide, the adverse move that liquidates an isolated position is about one divided by the leverage.
- 5x: roughly a 20% move against you.
- 10x: roughly a 10% move.
- 25x: roughly a 4% move, which a normal day can deliver.
This is why seasoned traders treat leverage as a way to free up capital, not to size up risk beyond their plan. Whatever you choose, Otomato monitors leveraged positions and alerts you as they approach liquidation.
Frequently asked questions
- How does a leverage calculator work?
- Leverage multiplies your margin into a larger position: position size = margin × leverage. So $1,000 of margin at 10x controls a $10,000 position. The same leverage means a 1% move in the market is a 10% move on your margin, in both directions.
- How much leverage is too much?
- The higher the leverage, the smaller the adverse move needed to liquidate you: roughly 1 / leverage. At 20x, a ~5% move against you wipes out the margin. Many traders keep leverage low precisely so a normal candle cannot end the trade.
- Is leverage the same as position size?
- No. Position size should come from your risk plan; leverage is just the tool that funds it with less margin. Two traders can hold the same position with very different leverage depending on how much margin they post. Otomato monitors leveraged positions and alerts you as they approach liquidation.
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Leverage up, but stay watched
Otomato detects your leveraged positions across chains and alerts you as they get close to liquidation, so you can act in time.
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