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Leverage and Position Limits
Leverage and Position Limits
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Written by Online Support
Updated over a week ago

A risk limit is a risk management mechanism used to limit the risk of a trader's position. In a trading environment with large price fluctuations, a single trader who uses high leverage to hold a large position may bring huge losses through the position. This system uses the concept of dynamic leverage, that is, the maximum leverage that can be used when trading will change according to the value of the position held by the trader: the greater the value of the position held, the lower the maximum leverage that can be used. At the same time, the larger the leverage is, the smaller the position that can be opened.

BTCUSD contract

Notional value of holdings (BTC)

maximum leverage

0~50

125x

50~100

100x

100~150

50x

150~250

20x

250~500

10x

500~1,000

5x

1,000~2,000

4x

2,000~5,000

3x

>5,000

1x

ETHUSD contract

Notional value of holdings (ETH)

maximum leverage

0~500

125x

500~2,500

100x

2,500~5,000

50x

5,000~10,000

20x

10,000~20,000

10x

20,000~30,000

5x

30,000~40,000

4x

40,000~50,000

3x

>50,000

1x

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