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Leverage lets you control a larger position than the amount of money you put in. It is usually shown as a multiplier, such as 2x, 5x, or 10x. In Entry Finance, you choose leverage directly from the trading panel, as shown in Open positions and orders. If you use 5x leverage, every 100 USDC of margin gives you 500 USDC of market exposure.

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Why traders use leverage

Leverage is useful because it can increase returns on a good trade without requiring a large balance. People use it when they want to:
  • get more exposure with less capital
  • trade short-term moves more efficiently
  • keep part of their capital free instead of committing everything to one trade

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The trade-off

Leverage increases both profit and loss. That is the part beginners must understand first. If your position is larger, even a small market move has a bigger effect on your PnL.

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Simple example

You have 100 USDC.

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Without leverage

You open a 100 USDC position.
  • If price moves up 3%, you make about 3 USDC
  • If price moves down 3%, you lose about 3 USDC

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With 5x leverage

You open a 500 USDC position using the same 100 USDC as margin.
  • If price moves up 3%, you make about 15 USDC
  • If price moves down 3%, you lose about 15 USDC
The market moved the same amount. The result changed because your exposure was larger.

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Why this matters

Leverage can be helpful, but it is not automatically better. Higher leverage means:
  • faster gains if you are right
  • faster losses if you are wrong
  • less room before liquidation
That is why many beginners start with low leverage or no leverage at all. In practice, leverage should always be understood together with Margin explained, Cross and isolated margin, and Liquidation price and risk engine.