Borrowed money: leverage, margin and liquidation
Work out how much of your deposit a price move eats, and why you can get closed out sooner than you expect.
Module 16 of 26, Fees, borrowed money, and who holds your crypto. Lesson 3 of 7, about 16 minutes.
The takeaway
The useful leverage question is how much margin a realistic bad move would take, not how much a good move could make.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.
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Related lessons
- Debt, gearing and who gets paid first
- Owning a coin versus a perpetual contract
- Working out your liquidation price before you open
- The full cost of a leveraged crypto trade, and the ‘free yield’ trap