> For the complete documentation index, see [llms.txt](https://flipper-3.gitbook.io/flipper-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://flipper-3.gitbook.io/flipper-docs/flipper-trading/leverage.md).

# Leverage

## <mark style="color:$primary;">Overview</mark>

Leverage allows you to control a larger position using a smaller amount of collateral.

For example, using 10× leverage, $100 of collateral provides exposure to a $1,000 position.

Higher leverage increases both potential returns and potential losses.

## <mark style="color:$primary;">Example</mark>

| <mark style="color:$primary;">**Leverage**</mark> | <mark style="color:$primary;">**$100 Collateral Controls**</mark> |
| ------------------------------------------------- | ----------------------------------------------------------------- |
| **1×**                                            | $100 Position                                                     |
| **5×**                                            | $500 Position                                                     |
| **10×**                                           | $1,000 Position                                                   |
| **20×**                                           | $2,000 Position                                                   |
| **50×**                                           | $5,000 Position                                                   |
| **100×**                                          | $10,000 Position                                                  |

## <mark style="color:$primary;">Important Notes</mark>

{% hint style="warning" %}
Leverage does not increase your collateral - it only increases your market exposure.

Higher leverage also increases liquidation risk.
{% endhint %}

{% hint style="warning" %}
If you're new to leveraged trading, consider using lower leverage while becoming familiar with the platform.
{% endhint %}