Most traders will use between 2x and 10x leverage. 1x leverage is essentially the same as not using leverage at all.
Mushino supports up to 150x leverage.
100x leverage is risky - if the price moves 1% in your favor, you have made a profit of 100%. If the price moves 1% against you, you have made a loss of 100% (your position is effectively bankrupt).
10x leverage is much more conservative. if the price moves 1% in your favor, you have made a profit of 10%. If the price moves 1% against you, you have made a loss of 10% (your position is still going strong).
Profits and losses
Note that the leverage does not impact your profits and losses.
If the price moves 1% in your favour, you will have made the same amount of money, no matter whether you use 1x, 10x or 100x leverage.
The leverage only impacts your return on equity (RoE).
RoE is calculated using the following formula:
RoE = Profit / Collateral
where Collateral is the collateral that you put up for your position when you opened it.
The larger the leverage, the smaller the collateral you will need to put up, and the higher the RoE will be when you make profits.
Changing the leverage
When you change the leverage of your position, the Liquidation Price will also change.
Most traders will adjust the leverage slider until they arrive at a Liquidation Price they are comfortable with.
Adjust the leverage by dragging the golden slider.
Putting up more collateral (i.e. using lower leverage) will generally make your position less likely to enter Liquidation.
However, that is not always an option.
A well-placed stop order is a great alternative. A stop market order with a stop price well above the Liquidation Price (if you are long), or well below the Liquidation Price (if you're short) will generally save you from entering Liquidation.
If you're short, the order must be a long order.
If you're long, the order must be a short order.
The Mushino position editor makes it easy to place a stop market order for your position. Just type in the stop price, as seen below: