> ## Documentation Index
> Fetch the complete documentation index at: https://docs.leap.trade/llms.txt
> Use this file to discover all available pages before exploring further.

# Leverage & Margin

> Understand position value, leverage, cross margin, available margin, and why more leverage means less room for error.

Leverage lets you control a position that is larger than the margin committed to opening it.

That makes capital more efficient, but it also makes sizing mistakes more expensive.

## Position value vs margin

Suppose you open a **\$1,000 position at 5x leverage**.

A simplified initial-margin calculation is:

**$1,000 ÷ 5 = $200**

So you may need roughly $200 of initial margin to create $1,000 of market exposure.

Your P\&L still moves with the \$1,000 position.

## What leverage changes

Higher leverage:

* reduces the initial margin needed for the same position value
* increases the position value you can open with the same collateral
* leaves less room for adverse price movement before margin becomes a problem

It does **not** improve the quality of the trade.

## Maximum leverage

Maximum leverage varies by market.

Leap shows the market's leverage information in Explore and in the trading interface. A major market may support more leverage than a smaller or less liquid market.

If a market offers high maximum leverage, treat that as a limit, not a recommendation.

## Cross margin

The current Leap trading interface uses **Cross margin** as the primary margin mode shown in Simple and Pro.

With cross margin, collateral is shared across your cross-margin positions.

That can be capital-efficient because profitable positions and unused collateral can support the account. It also means losses in one cross-margin position can reduce the buffer available to other positions.

## Available margin

Available margin is the part of the account that can still support new or existing positions.

It changes as you:

* open or close positions
* make or lose unrealized P\&L
* add or withdraw funds
* pay or receive funding
* change exposure

## Margin used

Margin used is collateral currently tied to your open exposure.

A growing position can therefore affect both the size of the trade and how much flexibility remains in the rest of the account.

## Practical rule

Choose the **position size first**, then use leverage as a margin setting.

Doing it in the opposite order — choosing high leverage because it lets you open a bigger position — is one of the easiest ways to take more risk than intended.