Margin trading can be complex and risky. Understanding how leverage, margin modes, and liquidation prices interact is crucial for any trader.

This interactive simulator is designed to help you visualize these concepts in a safe, risk-free environment. Use the tabs below to learn the core concepts, simulate a single position, or experiment with multi-position cross margin management.

Key Concepts

1. Leverage

Leverage allows you to control a larger position with a smaller amount of actual capital (margin). For example, 10x leverage means you can control a $10,000 position with only $1,000 of your own money.

2. Isolated vs. Cross Margin

• Isolated Margin: Limits your risk to the individual position. If you are liquidated, you only lose the margin assigned to that specific trade.
• Cross Margin: Uses your entire wallet balance to back all open positions. This provides more buffer against liquidation but puts your entire account at risk.

3. Liquidation Price

The liquidation price is the point at which your losses equal your margin. If the market price reaches this level, the exchange will force-close your position to prevent you from going into a negative balance.

Disclaimer: This simulator is for educational purposes only. Margin trading involves significant risk of loss and is not suitable for all investors.