Futures on overseas exchanges offer leverage from tens to hundreds of times. Higher leverage lets you hold a larger position with less margin, but it also brings the liquidation price closer, so a small adverse move can close the position.
This guide explains leverage and required margin, maintenance margin, isolated versus cross margin, and the liquidation price, with worked examples.
Leverage and required margin
Leverage sets the share of the position's notional value that you must post as margin. The higher the leverage, the less margin is required.
| Leverage | Required margin | Approx. adverse move to liquidation |
|---|---|---|
| 10x | 1,000 USDT | About 10% |
| 50x | 200 USDT | About 2% |
| 100x | 100 USDT | About 1% |
The actual liquidation price includes the maintenance-margin rate and fees, so liquidation occurs earlier than these approximations.
Maintenance margin and liquidation
Maintenance margin is the minimum margin needed to keep a position open. When unrealised losses push margin below that level, the exchange force-closes the position: this is liquidation.
- The maintenance-margin rate rises with position size (tiered)
- Most exchanges deduct a liquidation fee
- During extreme moves the insurance fund or auto-deleveraging (ADL) may apply instead of a fill at the liquidation price
Isolated vs cross margin
| Item | Isolated | Cross |
|---|---|---|
| What is at risk | Only the margin assigned to the position | The whole futures balance |
| Maximum loss | The assigned margin | The account balance |
| Liquidation resistance | Lower (less margin backing) | Higher (whole balance backing) |
| Typical use | Beginners who want to cap the loss | Experienced users managing several positions |
With isolated margin you cannot lose more than the margin assigned even if liquidated. Keep leverage low and check the liquidation price on the trading screen before placing an order.
The leverage cap is not uniform
- Maximum leverage differs by pair (major pairs are higher)
- The cap falls as position size grows
- Some exchanges restrict leverage until KYC is complete
- Exchanges can lower caps temporarily during volatile markets
Check the maximum leverage and liquidation rules of the listed exchanges
Frequently asked questions
Q. Do I lose all my margin when liquidated?
A. With isolated margin, the margin assigned to the position is almost entirely lost including the liquidation fee. With cross margin the whole futures balance is at risk. Check the exchange's liquidation rules and margin-mode explanation in advance.
Q. Can I change leverage after opening a position?
A. Many exchanges allow changing leverage on an open position, but the permitted range and how required margin is recalculated differ by exchange.
Q. What is auto-deleveraging (ADL)?
A. When a liquidated position cannot be absorbed by the market or the insurance fund, the exchange force-reduces profitable positions on the opposite side. It can trigger during sharp moves.
Sources and conditions
FX Textbook is an independent information site, not an exchange or a provider of personal investment advice. Crypto-asset trading involves risk: price moves, liquidation of leveraged positions, transfer errors and exchange operating risk can result in the loss of some or all invested capital.
NEXT STEP
Once you know the mechanics, compare the exchanges.
Spot and futures fees, maximum leverage, liquidation rules and Japanese-language support, organised exchange by exchange.
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