Viewing your margin leverage

Important: Margin trading is high risk and only available to eligible professional investors in select locations. Margin trading is not available in Hong Kong or to Hong Kong users.

Warning: Margin trading is a high risk activity. Please read carefully the Risk Warnings and Appendix 2, Terms for Lending Services on Bullish.com.

Leverage is the use of borrowed funds to increase the size of a position beyond the capital initially invested. It allows you to control larger positions with smaller capital, potentially amplifying both profits and losses. Leveraged trading is considered high risk because it is possible for losses to exceed your portfolio value, although Bullish employs many techniques to reduce these risks where possible.

Bullish’s defines leverage as Collateral / (Collateral - Liabilities). Note that under this formula, a leverage of 1x would correspond to having no liabilities. Leverage values greater than 1x correspond to having some kind of liability.

We always show leverage as a number with the suffix “x” (multiplication symbol).

Maximum Initial Leverage

It is your maximum Leverage immediately upon borrowing a Margin Loan. To borrow a Margin Loan, your Leverage after the borrowing must not exceed the Maximum Initial Leverage.

Margin Call Leverage

It is the level of your Leverage above which you may be sent Margin Warnings (as defined below), alerting you that your Leverage is approaching the Partial Liquidation Leverage.

Partial Liquidation Leverage

It is the level of your Leverage at which we may commence selling or liquidating your Collateral to reduce your Leverage.

Full Liquidation Leverage

It is the level of your Leverage at which we may commence selling or liquidating your Collateral to repay all your Debts.

Defaulted Leverage

It is the level of your Leverage that triggers a suspension of the affected Trading Account.

 

How is leverage calculated?

Leverage = Collateral ÷ (Collateral - Debt)

Notes:

  • By convention leverage values are suffixed with an 'x'.

  • Collateral and debt are both measured in USD.

  • When you have no liabilities, your leverage is 1x.

  • Leverages of values over 1x are increasingly risky.

Example:

If you have a collateral of 100,000 USD value and you have borrowed assets currently valued at 50,000 USD, then your current leverage is calculated as:

Leverage = 100,000 ÷ (100,000 - 50,000)

Your current leverage is 2x.

 

Viewing your current leverage

There are two ways to view your current leverage:

From the Trade tab,

  1. Go to the left-hand navigation and choose Trade.
    Trade in lefthand navigation.png

  2. In the Margin panel you will see your current leverage.
    Current leverage in Margin panel.png

Viewing your expected leverage

When you are planning to increase your leverage, for instance by sending a new order, Bullish will help you estimate your future leverage. Please be aware that any such estimation is on a best-efforts basis from the information we have available and the actual leverage may be higher or lower.

From the Trade tab,

  1. Go to the left-hand navigation and choose Trade.
    Trade in lefthand navigation.png

  2. Enter the details of the order you wish to send.

  3. In the Margin panel, you will see your expected leverage.
    Margin panel Current to Expected leverage.gif

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