Futures

Leverage Calculator

Translate between notional exposure, required margin, and effective leverage so you know what a “10×” position really costs.

Results

Required margin —

Notional exposure —

Effective leverage —

Adverse move to ~wipe margin —

Leverage multiplies both gains and losses relative to posted margin. A 5% adverse move on 20× can erase the margin before fees.

Leverage = Notional ÷ Margin. Margin = Notional ÷ Leverage. Notional = Margin × Leverage.

Margin = 10,000 ÷ 10 = $1,000. Rough wipe ≈ 1/10 = 10% adverse move (before MMR/fees).

$25,000 notional on $2,000 margin → 12.5× effective leverage.

Is exchange max leverage the same as effective leverage?

No. Max leverage is a venue limit. Effective leverage is notional divided by the margin you actually post.

Does higher leverage increase liquidation chance?

Usually yes — the liquidation buffer shrinks as leverage rises. See the liquidation calculator.

Can I use this for spot margin?

The same ratio applies to borrowed notional vs collateral, but interest and borrow limits differ by venue.

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