How Do I Set Leverage On Futures?
An explanation of how to set leverage when trading Futures.
Mohamed Sharaf avatar
Written by Mohamed Sharaf
Updated over a week ago

When Trading with leverage on Coinrule, there are two ways to set your preferred leverage. You could either set your leverage (through the formula explained below) or by setting your leverage directly on the Exchange. This article explains how to go about setting your leverage and the two different methods.

How To Set Leverage On Coinrule

On futures, Coinrule allows you to trade one coin per rule. This is to prevent your rule opening trades on several different coins and drastically increasing your exposure to the market when using leverage.

To figure out how many contracts you want to Long / Short, use this equation:

Position Size / Price = Number of Contracts

Using ETH as an example, If you were wanting to allocate $100 per trade you would do the calculation 100 ($100 you are allocating) / 1848 (Price of ETH) = 0.0541 Contracts.

When you use leverage this number will change as your position size will be multiplied by the amount of leverage you are using. For example, you have $100 of margin (your own capital you put up as collateral) and you use 10x leverage. 100 * 10 = $1,000 (This is your new position size).

The calculation will then be 1,000 / 1848 = 0.541 contracts as shown in the example:

How To Set Leverage on Binance Futures

Setting Margin Mode and Leverage

There are two different margin modes you can select, “cross” or “isolated”. “Cross” will result in all your trades sharing the same margin. This will result in your liquidation level being lower compared to “Isolated”, however, you run the risk of losing all your trading account capital if your liquidation level is reached.

“Isolated” results in each trade’s margin being isolated and only enables this amount to be lost if your liquidation level is reached. Your liquidation level will be higher than “cross”, but only the margin you have allocated for each trade is at risk.

Binance Futures Settings

Margin mode and leverage setting.

The margin mode and leverage is individually set for each coin. The default setting on every coin is "cross" and 20x leverage when trading on Binance.

You can alter the leverage on each specific coin to obtain your desired position size.

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