Leverage and liquidation simulator
Leverage magnifies gains and losses by the same amount. What many overlook: it also shortens the distance to a forced close-out. Raise the leverage here and watch how small the remaining cushion gets.
Simplified, without financing costs or fees. In practice the threshold sits closer, not farther away.
Die Erklärung dazu steht in der Lektion Leverage.
Frequently asked questions
At what price move is a 25x-leveraged stake wiped out?
Four percent, since 100 divided by 25 is 4.
Why does growth rate fall past a certain leverage?
Because variance grows with the square of leverage, while expected value only grows linearly.
Related
- LiquidationStage 2
- LeverageStage 2
- Tax on your gainsCalculators