How to change leverage on an open position?

Adjusting leverage on an open crypto position changes the liquidation price and margin requirements but doesn’t alter the entry point or trigger new fees—use it wisely to manage risk or boost gains. (154 characters)

Jul 23, 2025 at 04:42 pm

Understanding Leverage in Crypto Trading

Leverage in cryptocurrency trading allows traders to open positions larger than their actual capital by borrowing funds from the exchange. This amplifies both potential profits and losses. When a position is already open, changing the leverage might be necessary due to shifting market conditions or risk management strategies. Most major exchanges like Binance, Bybit, and KuCoin allow this adjustment, but the process and implications vary. It's critical to know that changing leverage on an open position does not alter the entry price or the amount of collateral already used—it only affects the liquidation price and margin requirements moving forward.

Why Adjust Leverage Mid-Trade?

Traders may want to reduce leverage to protect against sudden price swings or increase it to maximize returns if confidence in the trade direction grows. For instance, if a long position is moving favorably and the trader wants to lock in gains while minimizing risk, they might reduce leverage to widen the liquidation buffer. Conversely, in a strong trend, increasing leverage can boost profits without adding more capital. However, each adjustment impacts the liquidation price directly—this must be monitored closely to avoid unexpected liquidations.

Step-by-Step: How to Change Leverage on Binance Futures

• Navigate to the "Positions" tab in the Futures trading interface
• Locate the open position you wish to modify
• Click the pencil icon or "Edit Leverage" button next to the position
• Input the new leverage value (e.g., from 10x to 5x)
• Confirm the change using your 2FA or password if required
• Observe the updated liquidation price and margin ratio in real-time
  

  This process recalculates the maintenance margin and adjusts the liquidation threshold instantly. No new order is placed—only the leverage parameter of the existing contract changes.

  How Bybit Handles Leverage Adjustments on Open Positions

  
  Bybit allows leverage changes without closing the position, but users must be cautious about the margin mode. In cross-margin mode, adjusting leverage redistributes the available balance across open positions. In isolated mode, the change only affects that specific position.
• Go to the "Positions" section
• Find your open trade and click "Leverage" under the position details
• Enter the new leverage value
• Click "Confirm" and verify via email or Google Authenticator
• Check the updated liquidation price displayed immediately below the position
  

  Note: If the new leverage causes the position to fall below the maintenance margin, the system will prompt an error—you must add margin manually before proceeding.

  Common Mistakes When Modifying Leverage

  
  A frequent error is assuming that changing leverage resets the entry price or average cost—it does not. Another is failing to check the new liquidation price after adjustment. Some traders increase leverage thinking it boosts profit linearly, but it also increases risk exponentially. Also, on some platforms like OKX, leverage changes on open positions are only allowed in isolated margin mode—not cross. Always verify the exchange’s specific rules before acting. Missteps here can trigger liquidation even in seemingly stable markets.
  

  FAQs

  Can I change leverage on a position in profit or loss?
  
  Yes, most exchanges allow leverage adjustments regardless of whether the position is in profit or loss. However, if the position is near liquidation, the system may block the change unless you add more margin first.

  Does changing leverage trigger a new order or affect fees?
  
  No, changing leverage on an open position is a parameter update—it does not create a new trade, so no additional trading fees are incurred. The original entry remains unchanged.

  Will my position be liquidated immediately after lowering leverage?
  
  Lowering leverage increases the liquidation price buffer, so immediate liquidation is unlikely. In fact, it usually makes the position safer. However, always verify the updated liquidation price in the interface to be certain.

  Is it possible to change leverage on a position using a mobile app?
  
  Yes, apps like Binance and Bybit support leverage changes on open positions. The steps mirror the desktop version: go to Positions > Edit Leverage > Input new value > Confirm. Ensure your device has stable internet to avoid failed transactions.