Crypto Leverage Trading Calculator
This crypto leverage trading calculator should be used to calculate how much margin capital you need in order to open a position. For example, if you want to open a position of 1 BTC at 50x leverage, you can put the data into the crypto leverage calculator to see how much money you need to deposit into your leveraged account. It can also be used to calculate leverage on some of the most popular altcoins.
Leverage trading crypto is a great way to increase profits but to do it the right way you need to know how much you are risking. Proper risk management and planning go into each position and you should calculate your margin capital and leverage before you start to know your total risk. Use our calculator for crypto leverage to see how much of your own margin capital you need to use in order to open each position. Change the leverage ratio, units, and the actual price of Bitcoin to get the full picture.
Crypto Leverage Calculator
How to use a crypto leverage calculator:
- Choose your cryptocurrency pair eg. BTC-USD.
- Select your deposit currency (USD, EUR..)
- Input your leverage ratio.
- Choose your position size in Units.
- Add the price you want to enter (or leave it at the current market price).
- Click Calculate.
What is a crypto leverage trading calculator?
When you leverage cryptocurrencies as a day trader both the risk and the reward increase proportionally and it is important to know how much you risk on each position.
A crypto leverage calculator is a tool that is used to calculate how much margin collateral, or capital, is needed to open your position.
For every trade you take, there are two components, your margin capital, and the leverage. Here is a quick demonstration of how to separate these two factors.
- Margin capital = Your own deposited money
- Leverage = The extra capital you receive from your exchange
Most crypto leverage trading platforms don’t give you the option to calculate your leverage or margin, they simply show you if you can afford to open the position or not.
To be more accurate with your risk management you should learn how to calculate your own leverage to know how much you are going to risk on each position.
It is your job as a crypto trader to take responsibility for how much leverage your choose and then how much capital you need to deposit to open every position.
For example, if you wish to open a leverage position in Bitcoin worth $10.000 but you only have $1000 in your account, then you should use the calculator to see how much leverage you need to add to be able to open the position.
How to calculate crypto leverage
If you are trading crypto and want to know the margin capital requirement of your position, this is how to do it:
- Choose the cryptocurrency you are trading.
- Select your deposit currency.
- Insert the leverage ratio you want to use.
- Choose the position size (in units).
- Add the market price of the coin (or leave it blank to use the current market price)
- Click calculate!
The calculated number is the amount you need to deposit in order to open the position you have selected. In case you already have money in your account, this is the amount of margin you need to use to open the position.
In our guide “best leverage ratio for crypto?” we explain further how to select the best leverage ratio for crypto.
When to use a crypto leverage trading calculator
The crypto leverage calculator should be used whenever you are unsure of how much capital is going into your position.
For example, if you choose to open a position worth $5000 and you select a leverage ratio of 100x, you need to know how much of your deposited money will go into this position.
In this case, use our calculator above to see how much you would need to deposit to open that position.
Another time you might want to use a leverage calculator is to see your maximum position size with your current margin balance.
Let’s say that you have deposited $500 in your crypto account and you want to know if you are capable of opening a position worth $8000 with that money.
Simply put in the data in our calculator and click calculate to see if your margin capital will cover the position size. If you can’t afford it you either need to increase the leverage or decrease the overall position size.
Benefits of calculating leverage in crypto trading
There are several benefits of calculating your leverage in crypto trading. Below are some of the best benefits:
- Know your total risk – When trading cryptocurrencies with leverage it is most important to understand how much risk you are taking on. With a calculator, you get to know your maximum risk for each position which is something that will help you in the long-term as you take full control over your risk. Learn how to calculate a leveraged loss on crypto.
- Calculate if you can afford a position – Sometimes it can be difficult to know if you can actually afford a position. For example, you know the position size you want to open but you don’t know if you can afford it. In this case, a crypto leverage calculator is your best tool. With a few steps, you can enter your data, calculate, and see if you have enough money in your account.
- Learn how to use leverage effectively – Once you start using the calculator you will start to learn how leverage really works and without knowing it you will learn how to calculate effectively without using the tool. More simple calculations will come naturally and you will be able to make them as you are trading.
- Optimize your profit potential – Sometimes you find yourself in a great situation with a perfect opportunity in front of you but you don’t know how much you can leverage up to maximize the profit potential. This is the perfect time to calculate your maximum position size while using leverage.
What is leverage ratio in crypto trading?
The Crypto leverage ratio is the amount of buying power you use when trading. For example, you can use a ratio of 1:10, 1:20, or even up to 1:100. Sometimes ratios are also described as 10x, 20x, and 100x.
The ratio is a multiple of your own margin capital.
Let’s say that you have deposited $200 in your account and want to use a leverage ratio of 1:10. This means that you multiply your deposited money 10 times.
In this example, the calculation would look like this:
$200 x 10 = $2000
Your maximum position size with a 10x leverage ratio would be $2000 if your initial investment was $200.
You can use ratios the other way around and calculate how much money you would need to deposit in order to open a position size. Let’s use the same example of $200 and see which leverage ratios you would need to open a position size of $5000.
Here we simply divide the $5000 position size with your initial deposit of $200. Here is the calculation:
$5000 / $200 = 25
In order to open a position size of $5000 with an initial deposit of $200, you would need to use a crypto leverage ratio of 25x or 1:25.
How much margin capital do you need to open a leveraged position in crypto?
The amount of margin capital can be calculated using our crypto leverage calculator above. The calculator will tell you the amount of money you need to deposit in your account to be able to open the position.
It all depends on how large the position is that you want to open, how much money you have at your disposal, and how much leverage your crypto exchange is offering.
Since most crypto leverage exchanges offer ratios of up to 100x or 125x you can open quite large positions with just a fraction of the total value.
It is not recommended to always maximize the ratio on your leverage crypto exchange but if you lack the capital, sometimes you need to use high leverage in trading to be able to afford the position size. The effect of high leverage in crypto trading can be both very positive and negative, make sure that you are aware of all the risks before starting out.
Below is a table that will show you how much margin capital your need to open different leveraged positions in crypto. In this example, the position size will be shown to the left, and to the right, I have demonstrated the different margin requirements for each position.
As you can see from the table above, the higher the crypto leverage ratio is the less capital you need to deposit to open the position. If you use a ratio of 75x you can open a position size of $50.000 with a deposit of only $666.
This is not a recommended ratio to use, simply a demonstration of the power that leverage has. To learn more, see how best leverage for small accounts.
What leverage should I use for crypto?
The amount of leverage you use for crypto trading is depending on how much size you want to use and how big your initial investment is.
If you want to go high risk you choose a ratio of 25x or more and if you want lower risk you choose a ratio that is less than 25x.
I recommend selecting a ratio that is not high enough to get you stopped out by the volatility in the cryptocurrency market.
A day trader can afford to use a higher ratio than swing traders. This is because day traders can capitalize on smaller movements that have a higher probability of being right whereas swing traders need to let the market play out to start moving in their favor.
This will most likely cause the swing trader to get stopped out very frequently if using a high ratio. Using leverage in long-term investing is not the best idea due to large fluctuations and high fees.
You should use a leverage ratio that meets your requirement when it comes to position sizing and the current time frame you are using.
Keep in mind that a higher ratio will always increase your risk. Should you be more risk-averse I recommend that you lower the leverage.
If your risk appetite is higher you can try to increase it and see how you handle the swings of the crypto market.
Crypto leverage is calculated by using our calculator at the top of this page. Use our quick guide to calculate your cryptocurrency leverage and margin.
Margin is your own capital required to open a certain position and leverage is the added funds from your trading platform.
To see how much margin capital is needed for your position you can use our calculator at the top of the page. Simply add the details of your position and see how much margin you need to deposit to be able to open the position.
To calculate the amount of leverage and leverage used for each trade, use our calculator at the top of the page. It will tell you how much your need to deposit to open a certain position size and you can use it to calculate the perfect leverage for your trade.
First your need to know your total position size, your opening price, and your closing price. Now, calculate the total percentage gain on the total position size with the leverage included. This will give you the profit on the whole position.
Our crypto leverage trading calculator can be used to calculate the amount of money you need to deposit in order to open a specific position size. Read the instructions at the top of the page to learn how to calculate your own leverage in crypto.
This guide should give you a good basic understanding of how to use a leverage calculator in crypto trading and you can calculate your own margin requirement for each position to manage risk better and maximize your profits.
See our different calculators: