Leverage is a powerful tool in trading that allows you to amplify your positions using a smaller amount of invested capital.
Think of leverage as a temporary loan: it lets you open a larger trade than your actual funds would allow. Leverage is usually shown as a multiplier, indicating how much larger your position is compared to your invested amount.
⚡ How Leverage Works on Coinmetro
Through strategic partnerships and liquidity provider relationships, Coinmetro offers:
1:5 leverage for non-deliverable OTC digital assets (browser or API trading)
Additionally, Coinmetro provides FIX and API access to the exchange via a Prime of Prime model (with FXPIG as the margin/credit provider). This gives individual and institutional traders:
Exchange-grade liquidity
Tight spreads
High-quality execution
CFD-like leverage
📊 Are Leverage and Margin the Same?
Leverage and margin are related but not the same:
Margin is the borrowed money or collateral you use to open a trade.
Leverage is the multiplier effect created by using that margin.
In other words: you use margin to create leverage.
Example: Allocating €1,000 as margin with 5:1 leverage allows you to open a position worth €5,000.
🏦 What Is Margin?
Margin is essentially a loan or debt provided to a trader to invest in other financial instruments.
A margin account lets you borrow funds at a certain interest rate.
The borrowed money allows you to purchase a basket of assets to potentially earn a higher return than the cost of borrowing.
Margin is the foundation of leverage — without margin, you cannot amplify your trading positions.
FAQs
💡 What is leverage in crypto trading?
Leverage is a multiplier that allows you to open larger positions than your actual invested capital, increasing both potential profits and risks.
📊 How does margin relate to leverage?
Margin is the collateral or borrowed funds you use to create leverage. Leverage shows how many times your margin is multiplied for trading.
💸 What leverage does Coinmetro currently offer?
Coinmetro currently offers 1:5 Leverage for non-deliverable OTC digital assets (browser or API trading).
📈 Can I lose more than my margin?
Yes. Leverage amplifies both gains and losses, so proper risk management, like stop losses, is essential.
🧪 Can beginners practice trading with leverage?
Yes! Coinmetro’s Demo Platform lets you practice leveraged trades without risking real funds, helping you learn safely.