# Using Leverage Wisely

Leverage multiplies your exposure — and your risk. Here’s how different levels of leverage impact your position size and the risk of liquidation:

📊 Leverage vs. Position Size

| Leverage | Capital at Risk | Max Position Size | Liquidation Risk |
| -------- | --------------- | ----------------- | ---------------- |
| 1x       | $1,000          | $1,000            | Low              |
| 5x       | $1,000          | $5,000            | Moderate         |
| 10x      | $1,000          | $10,000           | High             |

<figure><img src="https://4240345497-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWPFvIGwhGu6StbcPdpCB%2Fuploads%2FghYm6rU1wmFxhSXlFbZZ%2FLeverage%20vs%20Position%20Size%20and%20Liquidation%20Risk.png?alt=media&#x26;token=70387c2a-8c23-47ee-abfb-18a8347a6342" alt=""><figcaption></figcaption></figure>

Liquidation occurs when your margin drops below maintenance levels.