Leverage

Borrowed size. It multiplies wins, losses and speed.

What 10x means. With 10x leverage, $100 of margin controls a $1,000 position. A 1% move in your favor makes $10, which is 10% of your margin. A 1% move against you loses $10.

Margin is your deposit. Margin is the money you put up for the trade. In isolated mode it is the most you can lose on that position. The rest of your balance is untouched.

Higher leverage, closer liquidation. At 2x a coin must fall about 50% to liquidate a long. At 10x about 10%. At 40x about 2.5%. Crypto moves 2.5% before lunch.

Fees scale with size, not margin. The fee is charged on the full position size. At 20x, a round trip of 0.09% in fees is 1.8% of your margin before the price moves at all.

The beginner rule. MemeSim caps new traders at 5x. Finishing this lesson unlocks more. The cap is not there to annoy you: most liquidations happen above 10x.

Size first, leverage second. Decide how many dollars you are willing to lose. That is your margin. Leverage then only changes how far the price must move to take it. Lower is slower.