What is Leverage? BiKi Perpetual Contracts

BiKi Perpetual Contracts - What is Leverage
BiKi Perpetual Contracts – What is Leverage

Leverage is using your existing capital to borrow funds to open a position. This increases your reward and also your risk. Note that traders will not lose more than their capital.

BiKi Perpectual Contracts What is Leverage
BiKi Perpectual Contracts What is Leverage

The higher the leverage, the smaller the initial margin is required but it comes with a closer liquidation point. 

Example:

Using 100x, your position will be liquidated if price moves against you by 1%, here’s a table to show you how position will be liquidated for better illustrations: 

LeverageLiquidated if Price moves against you by
10x10%
25x4%
50x2%
100x1%

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