What is Leverage in Futures Trading?
Introduction
This article explains what leverage is and how it works on Coinlocally Futures. Leverage allows traders to control a larger position with a smaller amount of capital, making futures trading highly capital‑efficient. By using leverage, you can amplify both your buying and selling power beyond the balance available in your wallet.
Leverage lets you trade with more capital than you actually hold by using a portion of your funds as margin.
For example:
- BTC price = 20,000 USDT
- Spot Market: You need 20,000 USDT to buy 1 BTC
- Futures Market with 100x leverage: You only need 200 USDT as margin to control 1 BTC
Leverage increases your potential profits — but also increases your potential losses and liquidation risk.
How to Set Leverage
- Click the Leverage button on the trading interface.
- Drag the slider to select your preferred leverage level.
- You can also adjust leverage using the [+] or [-] buttons for precise control.
Additional notes
- In Cross Margin Mode, you can adjust leverage using the Adjust Leverage button even with an open position.
- In Isolated Margin Mode, leverage can also be increased or decreased while the position is open.
- Higher leverage brings higher liquidation risk because your liquidation price moves closer to the mark price.
- You can view leverage rules and margin brackets here:
https://futures.coinlocally.com/en_US/futuresData
Common Issues
- Using high leverage without understanding liquidation risk.
- Forgetting to adjust leverage before opening a position.
- Misinterpreting margin requirements when switching between Cross and Isolated modes.
Feeling lost?
If you're unsure how leverage affects your trades or which level is right for your strategy, our support team is available 24/7 to guide you step by step.
Updated on: 01/18/2026
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