FoundLuxFee
Around 0.08 % of the position per side — when opening and when closing. That is what the exchange charges for an order filled immediately; backtests and demo in the terminal calculate with it.
Understanding risk
What leverage really does
Leverage does not increase your chance of winning. It increases the position — and with it profit and loss in the same ratio. Set volatility, margin and leverage and see how stop, target, costs and distance to liquidation follow from them. The same calculation is behind every position in the terminal.
The most important number
How far the price may run against you
Until the margin is used up, the price may only run against you as far as the inverse of the leverage says:
| Leverage | Position from $100 margin | Counter-move until the margin is lost completely |
|---|---|---|
| 2× | 200 $ | 50,0 % |
| 5× | 500 $ | 20,0 % |
| 10× | 1.000 $ | 10,0 % |
| 20× | 2.000 $ | 5,0 % |
| 50× | 5.000 $ | 2,0 % |
| 100× | 10.000 $ | 1,0 % |
Simplified without fees and maintenance margin — in practice liquidation comes a little earlier. At 50× two percent in the wrong direction are enough. Bitcoin makes moves like that on a quiet afternoon.
What a position costs
Leverage multiplies the costs too
Slippage
Orders are rarely filled at exactly the price shown. Measured on real orders, around 0.06 % per side is added. So one round costs about 0.28 % of the position in total.
On the margin
The costs apply to the whole position, not to your margin. At 25×, 0.28 % of the position is already 7 % of the margin — just for in and out, without the price having moved.
If you hold a position for days, perpetual futures add the financing fee (funding) — several times a day, for or against you depending on the market.
Three rules
What follows from the numbers
Stop before the liquidation
If the stop is further away than the liquidation, it is never triggered — the position is gone before, and with it the whole margin. The calculator above shows it in red as soon as that happens.
Target larger than the costs
A target of 0.3 % brings almost nothing after 0.28 % of costs. The smaller the targets and the more trades, the more fees and slippage eat — that is why short timeframes lose almost everywhere in our studies.
A backtest is no proof
A good test shows that a setting would have held in the past — not that it will tomorrow. Why that is →
That is why everything here is demo. No real money, no deposit, no payment details — and that is not a transitional state but the purpose of the platform. What a practice account cannot reproduce — your own pulse, partial fills, exchange outages — is described under Paper trading. You can find the legal risk disclosure here.