# Leverage

Leverage represents the ratio by which you can increase your purchasing power beyond the initial margin (collateral). A 3x leverage means that you can buy three times more than your collateral. If you put in $100 as collateral, you can purchase $300 worth of futures contracts. With 50x leverage, the maximum purchase value would be $5,000 based on $100 collateral.

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Exercise caution when choosing your leverage level. Higher leverage increases the risk of liquidation. Trading with leverage carries significant risks. DMEX is not liable for any losses incurred due to poor trading decisions.
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