Leverage and liquidation price

Borrowing to trade a bigger position. If the price moves against you far enough, the exchange closes it: liquidation.

What it means

At 10× a drop of about 10% can wipe out the position; without leverage you still hold your coins.

What to watch

Know your liquidation price before you open a trade; fees and funding move it even closer.

How Compass-Alpha uses it

Background only; not used in any figure on Compass-Alpha.