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Leverage Calculator

See how much exposure your margin controls, how a price move translates into a return on margin, and how small a move it takes to wipe the margin out.

Risk ManagementBeginner
Your inputs
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Results
Leverage10×$50,000.00 controlled with $5,000.00
Margin requirement10%of position value
Move that wipes the margin10%before fees & liquidation buffer
P/L on a −3% move−$1,500.00−30% on margin
Effective account leverage5×−15% on equity
At 10× leverage every 1% price move is a 10% gain or loss on your margin. Leverage magnifies both directions equally — it does not change the odds, only the stakes.
Return on margin vs price move

Not financial advice. Results are estimates based on the values you enter and simplified assumptions; real trades are affected by fees, slippage, gaps and other factors. Trading involves substantial risk of loss. Read the full disclaimer.

How to calculate leverage

Leverage = Position size ÷ Margin used Margin requirement = Margin used ÷ Position size × 100 Move that wipes margin ≈ 1 ÷ Leverage × 100 (before fees and liquidation buffers) Return on margin = Price move % × Leverage

Worked example

  1. You open a $50,000 position using $5,000 of margin.
  2. Leverage = 50,000 ÷ 5,000 = 10×; margin requirement = 10%.
  3. A 3% adverse move costs $1,500 — a 30% loss on the margin.
  4. A 10% adverse move costs the entire $5,000 margin.

How to interpret leverage

Leverage tells you how sensitive your capital is to price. It doesn't change the probability of a trade working — it scales the outcome. What really matters is how leverage combines with your stop: a 10× position with a 1% stop risks 10% of the margin, which may be perfectly reasonable as a share of your whole account. Size the trade from risk first with the position size calculator, then check the leverage it implies.

Limitations and common mistakes

  • Brokers and exchanges liquidate before the margin reaches zero (maintenance margin), so the real liquidation move is smaller than 1 ÷ leverage.
  • Funding, swaps and fees are charged on the full position value, not on the margin.
  • Effective account leverage (position ÷ total equity) is the number that tells you how exposed the whole account is.
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Compare a trade's potential reward with its risk and see the win rate you need to break even.

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Find the largest peak-to-trough decline in an equity curve, its duration and the gain needed to recover.

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Leverage calculator FAQ

Is 10× leverage risky?

It depends on the stop and position size. 10× with a tight stop and small account risk can be conservative; 10× without a stop means a 10% move can erase the margin.

What's the difference between leverage and margin?

Margin is the money you put up; leverage is the ratio of position size to that money. 10% margin and 10× leverage describe the same position.

Does leverage change my risk/reward ratio?

No. Risk/reward depends only on prices. Leverage scales the money won or lost on both sides equally.