Last updated: May 2025
Reading time: 4 minutes
Welcome to Moon! Leverage is one of the most powerful tools on our platform, letting you control much larger positions with a small amount of capital. This guide explains exactly what leverage is, how it works on Moon, and why our system is designed to keep your risk limited to the amount you choose to wager.
What is Leverage in Trading?
Leverage allows you to borrow buying power from the platform so you can open a much bigger trade than your own money would normally allow.
Without leverage (1x): If you have $100, you can only buy $100 worth of an asset and the asset price would need to double for you to make $100
With leverage: The same $100 can control a position worth hundreds or even thousands of times more. With 1000x, the asset would only need to go up .001% for you to double your money.
On Moon, you can choose up to 1000x leverage. This means your $100 can control a $100,000 position.
Leverage multiplies both your potential profits and your potential losses — but on Moon we’ve built in an important safety feature: you can never lose more than the amount you originally wagered.
How Leverage Works on Moon
When you open a position on Moon, you decide two things:
Your wager (the amount of money you’re willing to risk — this is your maximum possible loss).
Your leverage (how much you want to multiply that wager).
The platform then calculates:
Your position size = wager × leverage
Your entry price
Your max loss price (the exact price the asset must reach for your position to be automatically closed at 100% loss)
Key rule on Moon: Your position is liquidated the moment it has lost an amount equal to your original wager. You cannot lose more than you put in.
Real Example: $100 Wager at 1000x Leverage
Let’s say Bitcoin is trading at $60,000.
You wager $100
You choose 1000x leverage
Your position size = $100 × 1000 = $100,000 worth of Bitcoin (roughly 1.666 BTC)
Now the two possible outcomes:
If Bitcoin goes up
If Bitcoin rises just 0.1% to $60,060, you make $100 profit (100% return on your wager).
Profits are multiplied by the leverage you chose.
If Bitcoin goes down
If Bitcoin falls just 0.1% to $59,940, you have lost $100 (the full amount of your wager).
At that exact point your position is liquidated automatically.
This price ($59,940) is called your max loss price.
You are never responsible for any losses beyond your original $100 — even if the market keeps crashing after you’re liquidated.
What is the “Max Loss Price”?
The max loss price is the price level at which your position will be closed to protect you from losing more than your wager. It is calculated automatically when you open the trade and is clearly shown on the order ticket and in your open positions list.
You can see it live on the chart as a red line labeled “Max Loss Price” so you always know exactly where your position would be closed.
Benefits of Using Leverage on Moon
Small capital, big exposure — Turn $100 into control of $100,000.
Capital efficiency — Free up your funds to open multiple trades at once.
Limited risk — Your maximum loss is always equal to the wager you chose.
Clear, transparent numbers — Max loss price is shown before you confirm any trade.
Low borrowing fees.
Important Risks to Understand
Even though your loss is capped:
High leverage means you can be liquidated very quickly on small price moves.
Markets can be volatile — a 0.1% move against you at 1000x is enough to lose your entire wager.
Always use leverage responsibly and only risk money you can afford to lose.
How to Choose Leverage on Moon
Select an asset and navigate to the Position Menu.
Enter your wager amount.
Use the leverage slider or type your desired multiplier (1x to 1000x).
Review the position size and max loss price shown.
Click Open Position when you’re ready.
You can change your leverage at any time before opening the trade.