Classroom

Leverage

Trading with borrowed funds that multiply both gains and losses. 10x leverage means ten times the exposure of your deposit.

Category: Derivatives

Where you see this on charliedesk

The forced closing of a leveraged position when losses wipe out the margin. Liquidation cascades can sharply accelerate a price move.

The total value of open futures positions in the market. Rising OI means leverage and new money are flowing in.