What is leverage trading? Bigger bets, bigger risks
By SendPay Business · · 2 min read
- 1Type in your own numbers
- 2The tool works it out
- 3See the answer clearly
Leverage trading means using borrowed money to open a bigger position than your own cash would allow. With 10x leverage, £100 controls a £1,000 position, so a 1% move in price becomes a 10% gain or loss on your money.
Margin and liquidation
The money you put up is your margin. If the price moves against you far enough that your margin can no longer cover the loss, the position is closed automatically. That's liquidation, and your margin can be lost.
Why it's risky
- Small price moves can wipe out your margin quickly.
- Crypto and currency prices can jump suddenly, including overnight.
- Fees and funding charges add up while positions stay open.
Try it
Name your platform and watch it come to life
Type a name, tap a colour and pick what it does. The phone changes as you go.
Colour
What it does
Design and preview your whole platform free, then launch when you are ready.
Rules for retail traders
Regulators in many countries limit or restrict leveraged products for everyday investors because many lose money on them. In the UK, some crypto derivatives can't be sold to retail customers at all.
Where SendPay fits
SendPay does not offer leverage or margin trading. SendPay crypto exchange platforms let customers buy, sell and hold crypto with their own money, under your brand, with assets held with regulated partners.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
How do I work out a trading strategy's expectancy?
Enter your win rate, average win and average loss.
Trading expectancy calculator →What does funding cost on a perpetual future?
Work out funding payments on a long or short over the time you hold it.
Funding rate calculator →What gain would win back a loss?
See the percentage gain needed to recover from any drawdown.
Drawdown recovery calculator →How close am I to a margin close-out?
Work out your margin level and how much more loss your account can take.
Margin level calculator →How close is liquidation at high leverage?
Our free liquidation price calculator shows where a leveraged position would be closed at any leverage.
Liquidation price calculator →How do I weigh risk against reward?
Check a trade's risk/reward ratio and the win rate needed to break even.
Risk/reward calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.