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Leverage Trading

Leverage lets you open a larger position using a smaller upfront collateral amount. That increases both your upside and your downside.

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What leverage means

If you choose a leverage multiplier, your position is scaled relative to the collateral you post.
  • Higher leverage can increase your payout if your side wins
  • Higher leverage also makes liquidation happen faster if the market moves against you

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Key terms

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Collateral Amount

Collateral is the amount you are putting up to open the leveraged position.

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Entry Odds

Entry odds are the odds used when your leveraged position is opened.

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Liquidation

Liquidation is the adverse odds point where your leveraged position is automatically closed. This can happen before the game settles if the mark moves far enough against you.

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Max Payout

Max payout is the total amount returned if your position wins and is not liquidated. This includes your original collateral.

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Why leverage is riskier

Leverage increases sensitivity to price movement. With a normal bet, you usually only care about the final result. With leverage, you also care about what happens before the final result, because a bad enough move can liquidate the position early.

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Example scenario

Here is a simple example to show how a leveraged position can behave:
  • You choose Team A moneyline at -120
  • You post $10 of collateral
  • You choose 4x leverage
  • Your nominal position is $40
  • If that $40 position drops to $30 at any point before settlement, it is liquidated and closed
You only posted $10 upfront, but the 4x multiplier gives you exposure as if the position were $40.

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If the trade goes well

If Team A wins and your position is not liquidated, your payout is based on the leveraged position size, not just the original $10 collateral. That means your upside is larger than a normal $10 bet.

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If the market moves against you

Now imagine the market moves against your side before the game ends. Because you posted $10 and are using 4x leverage, you only have $10 of room before your collateral is fully wiped out. So if the nominal $40 position drops to $30 at any point before settlement, it is liquidated and the trade is closed. That means:
  • you do not get to wait for the final score
  • the position is closed once the liquidation level is reached
  • higher leverage makes this happen faster

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Why this example matters

With a regular bet, you mostly care about whether Team A wins the game. With a leveraged position, you care about both:
  1. whether Team A wins
  2. whether the market moves against you enough to liquidate the position before then
So even if you still like your side long term, a sharp enough short-term move can still close the trade early.

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Important reminder

Leverage trading involves large risk. If you are unsure about the liquidation level, lower the multiplier or use a regular bet instead.