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How Leverage Works

Capital Efficiency
Control larger positions with less capital. With 10x leverage, 100 USD controls a 1,000 USD position.
Amplified Returns
Leverage multiplies both profits and losses proportionally to your leverage ratio.
Example Trade:
  • Position size: 1,000 USD (10x leverage)
  • Required capital: 100 USD
  • 10% favorable move: 100 USD profit (100% return)
  • 10% adverse move: 100 USD loss (100% loss)

Risk Management

Automatic Liquidation
Positions automatically close when liquidation price is reached to protect against total loss.
Liquidation Formula:
Liquidation Price = Entry Price × (1 - Protection/Leverage Value)
Example: 10 USD leverage at 0.50 USD entry with 5 USD protection = 0.25 USD liquidation price

Setting Up Leverage

Terminal Trading

1

Select Market

Choose your prediction market and direction (Yes/No).
2

Configure Leverage

Set leverage multiplier and position size.
3

Review Risk

Check liquidation price and margin requirements.
4

Execute Trade

Confirm and place your leveraged position.

X Bot Trading

Coming Soon - Leverage trading via X Bot with simple commands. Planned Features:
  • Direct leverage commands from Twitter
  • Instant position sizing with leverage ratios
  • Automated risk parameter setup
Example Command (when available):
@FliprBot buy YES 100 USD with 10x leverage on Bitcoin-150k-2025

Benefits & Risks

Advantages
  • Capital efficiency for larger market exposure
  • Enhanced profit potential on successful predictions
  • Access to markets with limited available capital
Considerations
  • Amplified losses on incorrect predictions
  • Liquidation risk during adverse price movements
  • Increased position monitoring requirements
Risk Management
  • Start with lower leverage ratios
  • Monitor liquidation levels closely
  • Use stop-loss orders for additional protection
Support
Risk Management GuideTrading TerminalFAQ