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What is leverage trading? Bigger bets, bigger risks

By SendPay Business · · 2 min read

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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.

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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

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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.

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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.

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How it works

Your own money app
  1. Name it and pick your colours
  2. Choose what it does
  3. Launch 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 big is a lot?

Convert any trade size between lot types and units.

Forex lot size converter →
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 →
How much margin does a trade need?

Work it out at any leverage.

Forex margin calculator →
What is an order book?

How trades get matched.

What is an order book? →
What is foreign exchange risk?

How currency moves hit a business.

Foreign exchange risk →
What is a forex spread?

The gap between buy and sell rates.

What is a forex spread? →

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.