Leverage trading on #Binance lets you borrow funds to increase the size of your trading position—allowing you to trade with more money than you actually have.

This is done through Binance’s #Futures platform.

How It Works?

When you use leverage, you only need to put up a small portion of your own money (called margin or collateral), and Binance lends you the rest. The size of your position is your margin multiplied by the leverage you choose.

Example:

  1. You have $100

  2. You use 10x leverage

  3. You can open a position worth $1,000

Your profit—or loss—is calculated based on the full $1,000, not just your $100.

What Does the Leverage Ratio Mean?

The leverage ratio (like 5x, 10x, or 125x) tells you how much larger your position will be compared to your actual funds.

  • 5x = Every $1 of your money controls $5

  • 50x = Every $1 controls $50

  • 125x = Every $1 controls $125

The higher the leverage, the less money you need to open a position. For example:

  • 10x leverage = You need 10% of the total position as margin

  • 50x leverage = You need 2%

  • 125x leverage = You need just 0.8%

Long vs Short Positions

Leverage trading allows you to:

Go Long – You profit if the price goes up

Go Short – You profit if the price goes down

This gives you more flexibility than regular spot trading.

The Risk of Liquidation

While leverage can increase your profits, it also increases your risk. If the market moves against your position, your losses will be amplified.

Example:

If you're using 10x leverage and the price moves 10% against you, you’ll lose your entire margin.

When this happens, Binance liquidates your position—automatically closing it to prevent further loss. You lose your collateral.

In short: Leverage can boost your gains, but it can also wipe out your position quickly. Use it with caution and make sure you understand the risks.

Binance offers a wide range of leverage options. Here’s a breakdown of the available leverage levels:

  1. Low leverage (1x-5x): Considered safer, suitable for beginners or conservative strategies

  2. Medium leverage (10x-20x): Balances risk and reward, popular among intermediate traders

  3. High leverage (50x-125x): Extremely risky, typically used by experienced traders for very short-term positions

How Beginners Should Start With Leverage?

If you're new to leverage trading on Binance, follow this step-by-step approach to minimize risks while you learn:

  1. Build Your Knowledge Foundation

  2. Complete Binance Academy courses on Futures and leverage trading

  3. Understand key concepts like margin, liquidation, funding rates, and order types

  4. Learn basic technical analysis to identify potential entry and exit points

  5. Study how market volatility affects leveraged positions

The most successful leverage traders aren’t the ones who use the highest leverage, but those who practice strong risk management and take the time to build their skills gradually.

As you start your journey with leverage trading on Binance, always remember: protecting your capital comes first.

With discipline, the right knowledge, and a cautious approach to risk, leverage can be a powerful tool—not a fast track to losing your funds.

Take advantage of educational resources like Binance Academy, start with low-risk trades, and give yourself time to gain real experience.

Over time, you can develop your own leverage trading strategy that works for you—based on practice, not guesswork. 👌🏻