Using Leverage Safely
Leverage is the most powerful and dangerous tool in crypto. Learn to use it without blowing your account.
Leverage amplifies your position size without requiring full capital. At 10x, a 5% price move becomes a 50% return. The same move against you risks 50% of your margin.
How Liquidation Works
- 2x leverage: Liquidated at 50% move against you
- 5x leverage: Liquidated at 20% move against you
- 10x leverage: Liquidated at 10% move against you
- 20x leverage: Liquidated at 5% move against you
- 50x leverage: Liquidated at just 2% move against you
Important
Always ensure your stop loss triggers before your liquidation price. If your stop is closer to entry than liquidation, your position is correctly sized.
Nezsig Recommended Leverage
- Beginners (0–6 months): Maximum 3x
- Intermediate (6–18 months): Maximum 5–10x
- Advanced (18+ months): Up to 20x on A+ setups only
- Never use 25x+ — the math simply doesn't favor survival
Isolated vs Cross Margin
Always use isolated margin. It limits your loss to only the funds in that specific trade. Cross margin uses your entire account balance — one bad trade can liquidate everything you own.
Interactive Calculators
Position Size Calculator
Calculate risk-correct size for any trade
Risk Amount
$100.00
Position Size
$5000
Margin Needed
$1000.00
Formula: Risk Amount ÷ Stop Loss % = Position Size
Risk / Reward Calculator
Verify R:R before entering any trade
Risk / Reward Ratio
4.00:1
Excellent — take this trade
Risk
2.34% ($1500)
Reward
9.38% ($6000)
Min Win Rate Needed
20.0%
Verdict
VALID TRADE
Discussion3 comments
This is exactly what I needed. The 10-layer system makes sense — explains why the signal quality is so consistent.
The No-Trade Zone filters are genius. I've been burned by signals during news events so many times. Good to know there's a filter for that.
Session bonus makes a lot of sense. London/NY overlap is always the most liquid period. Low liquidity breakouts are notorious fakeouts.