Leverage Guidance provides a suggested range for your leverage based on current market volatility. Using appropriate leverage is crucial for long-term trading success—too much can wipe out your account, too little leaves profits on the table. Note: This feature applies to futures trading only. For spot trading, leverage does not apply.
Understanding Leverage Bands
The leverage band shows a minimum and maximum recommended leverage:
- Low end (e.g., 3x): Conservative option for uncertain conditions
- High end (e.g., 10x): More aggressive option for confident trades
- The band narrows: When volatility is extreme (either direction)
- The band widens: When volatility is moderate and stable
How It's Calculated
Leverage recommendations are based on:
- ATR (Volatility): Higher volatility = lower leverage
- Market State: Choppy markets get lower leverage suggestions
- Risk Flags: Active flags reduce recommended leverage
- Historical Behavior: Recent price action patterns
- Your Risk Profile: Conservative profiles get lower ranges
The Current Leverage Indicator
Below the band, you'll see your actual current leverage (detected from Binance). The color indicates:
- Green: Your leverage is within the suggested band
- Yellow/Blue: Your leverage is below the band (conservative)
- Red: Your leverage exceeds the band (risky)
💡 Pro Tips
- •Always stay within or below the suggested range
- •When in doubt, use the lower end of the band
- •Higher leverage requires tighter stop losses
- •Never use max leverage just because it's available
