Leverage math.

Leverage compares notional exposure with the margin supporting it. A perpetual has funding; a dated future has expiry and basis; spot margin involves borrowed assets and interest. The same '5×' label does not make their costs or liquidation rules equivalent. Exchange maximums are product limits, not recommended settings. Calculate the position first, then check margin and the loss your exit condition could produce.

For a linear long, gross P&L is base-asset quantity × (exit price − entry price). For an inverse long, it is quote notional × (1 ÷ entry price − 1 ÷ exit price), settled in the base asset. Reverse the difference for a short. ROI is P&L ÷ initial margin × 100. Select the correct contract; the output also applies the fixed-margin loss cap described below.

Hypothetical linear long: 1,000 USDT margin at 10× gives 10,000 USDT entry notional. A 5% rise produces 500 USDT gross profit; a 5% fall produces a 500 USDT gross loss, or ±50% of initial margin before costs. At fixed quantity, changing leverage changes required margin rather than price P&L. Inverse settlement behaves differently. A 10% adverse move is not a universal liquidation trigger.

This calculator caps displayed losses at the entered margin and assumes no collateral additions. That is a model boundary, not a guarantee about your account. Manual top-ups or automatic margin replenishment, such as auto-add margin, expose additional collateral; cross margin can share collateral with other positions. Liquidation, insurance, shortfalls and negative-balance treatment depend on the exact product and account terms.

This tool estimates P&L at an entered exit price. The liquidation calculator estimates a maintenance-margin trigger under its stated assumptions. Neither reproduces every exchange tier or multi-position account. An exit scenario may be unreachable if liquidation occurs first; the trigger price, execution price and bankruptcy price are different concepts.

The calculation excludes trading fees, funding, borrowing charges and execution differences. Fees depend on actual fills and applicable maker/taker rates; a rebate is possible under some schedules. Funding may be paid or received. Slippage can make a fill better or worse than the assumed price. Reconcile the actual entry and exit fills and account ledger rather than multiplying a displayed P&L by leverage again.

Experience does not establish a universally suitable leverage setting. Specify contract units, planned size, exit condition, expected costs and available collateral. Test the loss at the planned exit and at worse fills. Compare that exposure with the account resources actually shared under the selected margin mode. If the required buffer or potential loss is unacceptable, reduce the position or do not open it; adding collateral also increases the capital exposed.

At 50,000 USDT per BTC, 0.02 BTC is 1,000 USDT notional. With 200 USDT initial margin, initial leverage is 5×. A rise to 51,000 gives a 20 USDT gross gain; a fall to 49,000 gives a 20 USDT gross loss on a long. That is 10% of initial margin before fees and funding. At unchanged position size, changing the leverage setting changes required margin, not this price P&L. Maintenance tiers, mark price, charges and collateral determine liquidation; the reciprocal of leverage is not an exact liquidation distance.