> For the complete documentation index, see [llms.txt](https://help.blum.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.blum.io/blum-perps-faq/leverage.md).
# Leverage
### What is Leverage?
Leverage allows you to open a position larger than your actual balance by borrowing extra buying power. It multiplies both profits and losses.**Examples:**
* If you have $100 and use **5x leverage**, you control a $500 position.
* If the price rises by 10%, your profit is $50 instead of $10.
* If the price drops by 10%, you lose $50 — half your margin.
* With **10x leverage** on the same $100, you control a $1,000 position.
* A 5% move against you is enough to wipe out your margin and trigger liquidation.
This is why leverage must be used carefully: higher leverage means higher risk.
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### Managing Leverage in Blum
In Blum, you can set your leverage directly when opening a Perps position:
1. Open **Blum** in Telegram.
2. Tap **Trade** → **Perps**.
3. Choose the asset you want to trade (e.g. BTC, ETH).
4. In the trading panel, adjust the **Leverage slider** or enter the desired multiplier (e.g. 2x, 5x, 10x, up to 100x).
5. Confirm before placing your order.
Blum will show you the **estimated liquidation price** based on the leverage you select, so you can see how much room your trade has before being closed automatically.
*(Tip: Beginners should stick to low leverage — around 2x to 5x — until they build experience.)*
### Adjusting Leverage
On this screen you can change your leverage setting. This determines your maximum possible order size.
* **Your max position at current leverage** – the maximum position size available to you personally, calculated based on your account balance, unrealized PnL, and currently open orders.
* **Max position at current leverage** – the maximum system-wide limit for this instrument, applied to all traders.
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