Leverage trading refers to trading cryptocurrencies or other financial assets with borrowed capital. It increases your buying or selling power, allowing you to trade with more money than you actually have in your wallet. You might borrow up to 100 times your account balance depending on the crypto exchange you trade on.

First, you need to deposit funds into your trading account before you can borrow funds and start trading with leverage. It is referred to the first capital you offer as collateral. The amount of collateral you will need is determined by the amount of leverage you are using, and the overall value of the position you intend to create.

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Also, you will need to have a margin threshold for your transactions. If the market goes against you and your margin falls below the maintenance barrier, you will need to put more money into your account to keep it from being liquidated.

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While leverage trading can multiply your potential profits, it might also cause high risk, especially in the volatile crypto market. To manage risks with leverage trading, you can benefit from stop-loss orders to automatically close your position at a particular price, which is very helpful when the market moves against you.