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Understanding Leverage

Updated over 2 weeks ago

For PXTrader there is only one type of margin that can be applied - Cross Margin. One key feature of Cross Margin is that you cannot manually set or adjust leverage. Instead, it is automatically determined by your position size and the platform’s risk parameters.

For detailed information about margin requirements for all available instruments, you can visit the Fees and Conditions page on our website.

What is leverage?

Leverage allows you to control a larger position with a smaller amount of capital. It’s like borrowing funds to increase the size of the Position you want to open.

Example:

If you have $100 and use 10x leverage, you can open a position worth $1,000.

  • If the price goes up 1%, your position gains $10 — a 10% return on your $100.

  • But if the price goes down 1%, you lose $10, also 10% of your capital.


Leverage Depends on Position Size

The larger your position, the lower the maximum leverage available. Platforms apply a blended margin system, where small positions may receive higher leverage, and larger ones require more margin, reducing effective leverage. This helps manage risk at scale.


Step-by-Step Margin Calculation with example

When using blended leverage, your margin requirement is not based on a single leverage figure but on the combined margin needed for each tier of your position. This is known as blended margin impact, and it's how the exchange calculates how much collateral you must maintain to keep your position open.

Let’s assume the following blended leverage structure:

Tier Range

Max Leverage

Margin Requirement (%)

0 – 30 BTC

200x

0.5%

30 – 90 BTC

75x

1.33%

You open a position of 41 BTC. This position spans across two tiers.

Step-by-Step Margin Calculation

  • First 30 BTC at 200x leverage which is 0.5% margin
    30 × 0.005 = 0.15 BTC

  • Next 11 BTC (from 30 to 41) at 75x leverage which is 1.33% margin
    11 × 0.0133 = 0.1463 BTC

Thus, the margin impact - the amount of your own funds required to open a position of 41 BCT, will be 0.15 BTC + 0.1463 BTC = 0.2963 BTC

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