3 Tips to Safely Leverage $ETH on Futures
1. Select a Conservative Leverage Ratio
Higher leverage amplifies both gains and losses. For $ETH futures, starting with 2×–5× leverage strikes a balance between opportunity and risk. Lower leverage gives you more room to withstand normal price swings without being liquidated.
2. Always Set Stop-Loss and Take-Profit Orders
Predefine your exit levels before entering a trade.
Stop-Loss: Caps your downside if the market moves against you e.g., 2%–3% below your entry.
Take-Profit: Locks in gains when your target is reached e.g., 5%–8% above entry.
This discipline prevents emotional decisions and protects capital during volatile moves.
3. Keep an Eye on Funding Rates and Position Duration
Futures funding fees can erode profits if you hold for too long.
Positive Funding (longs pay shorts) raises your cost if you’re net long.
Negative Funding (shorts pay longs) benefits long positions.
Check funding rate schedules on your exchange and adjust or close positions around rate settlements to avoid unexpected charges.
What’s your go-to leverage level?
