Trading
What Is Leverage?
Borrowed money makes a position bigger, which multiplies the gain and the loss alike.
Definition
Leverage lets $100 control $200 of exposure. The multiplier applies to losses exactly as it applies to gains, which is the part that tends to get skipped.
How it works
Deposit collateral, borrow against it, put the borrowed capital back into the position. At 2x, a 10% move in the underlying is a 20% move in your account.
In Continuum
There is no leverage button here. You build it: mint L/S, sell the S, deposit the L on a lending market, borrow USDC, go again. Each loop adds size and brings the liquidation price closer.
Related terms
More trading terms
Join the early access list and start trading synthetics on Solana.