Leverage does not raise your expected return - it scales your profit, your loss, and the odds of being force-closed by the same factor. On a perpetuals exchange your liquidation price is the level where the platform closes your position because your equity can no longer cover the maintenance margin, and at high leverage that price can sit inside the stop-loss you carefully set. This piece explains leverage, margin, and liquidation honestly, walks a real trade through the numbers, debunks the "I was liquidated on a wick" complaint with how mark price actually works, and shows what the regulators found about who wins and loses on leverage.
The previous part of this series taught you to set a stop at your invalidation level and to risk a small, fixed slice of your account per trade. It ended on a clean promise: put your stop where the read is wrong, size the position so a loss costs 1% to 2%, and one bad trade cannot end you.

برچسب: Risk Management

Liquidation Price and Leverage on Perps, Explained