Leverage is the ratio of position notional value to the margin posted to hold it. 10× leverage means a 1,000 USDT margin is supporting 10,000 USDT of notional exposure — gains and losses are amplified 10× relative to the margin posted.
Two distinct uses: 'allowed' leverage (the maximum the exchange lets you take, e.g. 100×) and 'used' leverage (your actual exposure ÷ equity). High allowed leverage on an exchange does not mean you should use it — used leverage of 2–3× is already aggressive for crypto.
Leverage interacts with stop distance: at 10× leverage, a 10% adverse move wipes out the entire margin. A liquidation price calculator turns the abstract 'X× leverage' into the concrete 'price at which your position is force-closed'.
Formula
leverage = position_notional / margin
Example
Account equity 1,000 USDT. Open long 0.1 BTC @ 50,000 = 5,000 USDT notional. Used leverage = 5,000 / 1,000 = 5×.
How Noon Barbari uses Leverage
Every concept here is implemented in the platform. Open the relevant docs or tool to see it in action.
Liquidation price calculator →Related terms
- Risk
Liquidation price
Price at which a leveraged position is force-closed by the exchange.
- Risk
Position size
How many units of an asset a trade holds — derived from risk budget and stop distance.
- Risk
Risk per trade
Dollar amount (or % of equity) you lose if the stop on a single trade hits.
- Risk
Drawdown
Peak-to-trough decline in equity, expressed as a percent of the prior peak.