Leverage Comparison
Calculator
Put the same trade side by side at 1x, 5x, 10x, 25x and a custom level. See how position size, PnL and ROI scale up - and how the liquidation price marches toward your entry until it sits inside your stop-loss.
Free, no sign-up, no ads. Educational tool — not financial advice.
TL;DR
Leverage is a position-size multiplier, not an edge. At Lx your position (and PnL, and ROI on margin) scale by L, but your liquidation sits roughly 1/L away from entry - so at high leverage the exchange can close you out before your stop-loss ever triggers. This tool shows that trade-off across leverage levels and flags the point where liquidation beats your stop.
What changes with leverage - and what doesn't
For the same margin, higher leverage means a bigger position, so the same percentage price move produces a bigger dollar P&L and a bigger ROI on your margin. What it never changes is your edge or win rate - those depend on your strategy, not your leverage. The only other thing leverage moves is the liquidation price, which creeps toward your entry as roughly 1/leverage.
When liquidation beats your stop
The danger isn't leverage itself - it's leverage where the liquidation distance (about 1/L minus maintenance margin) becomes smaller than your stop-loss distance. Past that point the exchange force-closes the position, at a worse price and with liquidation fees, before your planned stop can do its job. The calculator highlights this and reports the maximum leverage at which your stop still triggers first.
How to use it
Enter your account (used as margin), entry, stop and a target. The table shows each leverage level's position size, liquidation distance, P&L at the target and ROI on margin, with the liquidation column color-coded - green when your stop is safely inside liquidation, red when liquidation comes first. Choose the leverage that keeps liquidation comfortably beyond your stop, then size the actual position by risk.
Frequently Asked Questions
Does higher leverage make me more money?
Only mechanically: for the same margin, Lx leverage scales both your profit and your loss by L. It does nothing to your win rate or edge. It also moves liquidation closer to entry, so the extra return comes with a sharply higher chance of being force-closed.
How is liquidation distance related to leverage?
Roughly, liquidation sits 1/leverage away from entry (minus the maintenance margin). So 10x liquidates around a 10% move against you, 25x around 4%, 50x around 2%. The higher the leverage, the smaller the move that wipes the position.
What leverage is safe?
There's no universal safe number - it depends on your stop distance. The useful rule: keep leverage low enough that your liquidation price is well beyond your stop-loss, so your stop closes the trade first. This calculator shows that maximum directly.
Is margin the same as position size?
No. Margin is the collateral you post; position (notional) is margin x leverage. Fees and P&L are calculated on the notional, but your return is measured against the smaller margin - which is why leverage amplifies ROI.
Should I just use 1x to be safe?
1x (spot, or unleveraged futures) removes liquidation risk entirely - your stop is the only exit. Leverage is a tool for capital efficiency, not for boosting returns; if you use it, keep it low enough that your stop, not the exchange, closes losing trades.
