# Leverage

> Trading with borrowed funds, so a small move in the price has a much bigger effect on your position.

Canonical URL: https://fudfomo.co/glossary/leverage
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

Leverage lets you take a position larger than your own capital by borrowing the rest. A leverage of 10x means a 1 percent price move changes your position by 10 percent, in either direction.

Higher leverage means a smaller adverse move can liquidate the entire position. Crypto exchanges have offered eye-watering leverage of 100x or more, which is one reason regulators have moved to limit it for retail customers.

## Regulatory context

Maximum leverage for retail customers is capped in the UK, EU, and several other markets.

## Related terms

- [Margin](https://fudfomo.co/glossary/margin): The capital you put up to open and maintain a leveraged position.
- [Perpetual Futures](https://fudfomo.co/glossary/perpetual-futures): A futures contract with no expiry date. Common in crypto, kept in line with the spot price by funding payments.
- [Liquidation](https://fudfomo.co/glossary/liquidation): When a borrower's collateral is sold off automatically because their loan has fallen below the safety threshold.
- [Long](https://fudfomo.co/glossary/long): A position that profits when the price goes up.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co