Leverage allows you to open a larger trading position using a smaller amount of your own funds.

Instead of paying the full value of a position upfront, you provide a portion of it as margin, while leverage increases your market exposure.

Leverage is expressed as a multiplier, such as:

The higher the leverage, the larger the position you can control with the same amount of margin.

For example:

Although leverage increases your market exposure, it does not increase the amount of money you own.

Leverage amplifies both gains and losses.

If the market moves in your favour, your returns may be larger than they would be without leverage.

However, if the market moves against you, your losses also increase more quickly.

Higher leverage means even small market movements can have a significant impact on your position.

Higher leverage offers greater market exposure but also increases the likelihood of liquidation.

Lower leverage generally provides more room for the market to move before your position is at risk.

Bayse does not recommend a specific leverage level. Before selecting leverage, ensure you understand the associated risks.

No. Leverage increases both potential profits and potential losses.

Yes. The higher your leverage, the more sensitive your position becomes to market price movements.

Perpetual contracts are designed as a leveraged product. The leverage options available will depend on the market you’re trading.