Leverage is expressed in ratios, such as 20:1 or 100:1. So, if your trading account has $2,000 and you want to open a long position with a 100:1 leverage ratio, that means you’ll need to stump up collateral – using your own funds – equal to 1% of your position size. The crypto exchange will provide the remaining 99%.
- Forex vs. Crypto
- A Day in the Life of a Crypto Trader – CoinDesk