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How to use leverage on KuCoin Futures?

On KuCoin Futures, leverage from 1x to 100x amplifies both gains and losses—always confirm your setting before trading and understand how it impacts liquidation risk.

Jul 27, 2025 at 02:01 am

Understanding Leverage in KuCoin Futures


Leverage allows traders to open positions larger than their available capital by borrowing funds from the exchange. On KuCoin Futures, leverage magnifies both potential profits and losses. Traders can choose leverage from 1x up to 100x, depending on the contract type and their risk appetite. It's crucial to understand that higher leverage increases exposure—while gains may be amplified, so can losses. Always check the leverage indicator on the trading interface before placing an order.

Setting Leverage Before Opening a Position


Before entering a futures trade, you must manually set your desired leverage. This is not automatic.

  • Navigate to the Futures trading page on KuCoin.
  • Select the contract you want to trade (e.g., BTC/USDT perpetual).
  • Look for the "Leverage" dropdown menu near the order entry panel.
  • Click it and choose your preferred level—options appear in green text like 5x, 10x, 50x, or 100x.
  • Confirm the change by clicking "Confirm" if prompted.
    This setting applies only to the current position. Each new trade requires reselection unless you're in a cross-margin mode with default leverage saved.

    Adjusting Leverage During an Active Trade


    You can modify leverage even after opening a position, but this affects your margin and liquidation price.
  • Go to the "Positions" tab on the futures interface.
  • Find your active trade and click the "Edit Leverage" icon (usually a gear or wrench symbol).
  • Enter the new leverage value—note that increasing leverage reduces your liquidation buffer.
  • KuCoin will instantly recalculate your maintenance margin and liquidation price, both shown in real-time.
    Be cautious: changing leverage mid-trade can trigger a margin call if the new liquidation price moves closer to the current market rate.

    Difference Between Isolated and Cross Margin Modes


    KuCoin offers two margin modes that directly impact how leverage functions:
  • In Isolated Margin, leverage is fixed per position. Only the allocated margin for that trade is at risk. For example, if you set **10x leverage on a $100 position**, only $100 is used as collateral.
  • In Cross Margin, the entire wallet balance acts as collateral. Leverage isn’t fixed—you can let the system auto-adjust based on market conditions, but this exposes your full balance to liquidation.
    To switch modes, click the "Margin Mode" button beside the leverage selector. Always verify which mode you're in—green text will highlight "Isolated" or "Cross" accordingly.

    How Leverage Affects Liquidation Price


    Leverage directly impacts when your position gets liquidated. Higher leverage means a smaller price movement can trigger liquidation.
  • Suppose you open a long position at $30,000 with **50x leverage**. Your liquidation price might be around $29,400—a 2% drop.
  • With 5x leverage, the same position might liquidate at $27,000—a 10% drop.
    KuCoin displays the real-time liquidation price in green below your position details. Always monitor this value, especially during volatile markets. You can also set a stop-loss order to exit before reaching liquidation.

    Common Mistakes When Using Leverage on KuCoin


    Many users lose funds due to avoidable errors:
  • Assuming leverage is permanent—you must reselect it for each new trade.
  • Ignoring the difference between Isolated and Cross modes—this can lead to unexpected full-balance liquidations.
  • Not checking the liquidation price after adjusting leverage—it moves instantly.
  • Using maximum leverage (100x) without understanding the risk—even a 1% price move against you can wipe out the position.
    Always test leverage settings in a demo account first if you're new to futures trading.

    Frequently Asked Questions

    Can I change leverage after placing a limit order but before it fills?

    Yes. As long as the order is still pending (not filled), you can adjust leverage. Go to the "Positions" tab, find the unfilled order, and click "Edit Leverage." The change will apply once the order executes.

    Why does my leverage reset to 1x after closing a position?

    KuCoin defaults to 1x leverage for safety reasons after each trade. You must manually reselect your preferred level before the next trade—it does not carry over automatically.

    Does leverage affect funding fees on KuCoin Futures?

    No. Funding fees are calculated based on the position size and the funding rate, not leverage. Whether you use 5x or 50x, the funding fee remains the same for the same position value.

    What happens if my position gets liquidated with 100x leverage?

    You lose the entire margin allocated to that position. KuCoin uses an auto-deleveraging system in extreme cases—if the insurance fund can’t cover the loss, nearby profitable traders may have their positions reduced to offset your loss.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

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