Leverage is the reason perps can turn a small move into a big result, and also the reason most new traders lose money on them. The arithmetic is simple, but it is easy to stop doing it in the heat of a trade. Sparkling does it for you on every order and puts the answer on the card.
Leverage is the ratio between position size and the margin behind it. It does not change the market; it changes how much a given move affects your balance.
| Margin | Leverage | Position | Effect of a 10% price move |
|---|---|---|---|
| 100 USDC | 1x | 100 USDC | ±10 USDC |
| 100 USDC | 2x | 200 USDC | ±20 USDC |
| 100 USDC | 5x | 500 USDC | ±50 USDC |
Figures exclude fees and funding and are for illustration only.
In futures, leverage comes from margin: you post a fraction of the contract value and the venue lets you hold the full exposure. The higher the leverage, the closer the liquidation price sits to your entry. Funding, mark price and margin modes are explained on our page about perpetual futures.
As a rough guide, at 2x a long is liquidated after a fall of a little under 50%, at 5x after a little under 20%, before fees and maintenance margin.
Sparkling routes perps to Hyperliquid or Lighter while your collateral remains in your own account, and each order card spells out entry, size, liquidation price and fees.
If you only want to bet on whether BTC or ETH goes up or down over a short window, Up/Down binary options on Lighter do it without leverage. Each position is fully paid for in USDC, there is no liquidation, and the most you can lose is what you paid for the shares.
Betting on a fall uses the same tools in the other direction; our page on how to short crypto walks through it.
Availability varies by jurisdiction. Leveraged products are restricted for retail users in several regions.
Status as of October 2026.
| Leveraged perp positionsLeverage set by you on each order | Selected regions |
|---|---|
| US and UK residentsLeveraged products closed | Unavailable |
| European Union and NorwayLeveraged crypto restricted for retail | Unavailable |
| Trading without leverageSpot swaps in all supported regions | Available |
Leveraged trading carries a high risk of losing your whole margin, and losses can arrive within minutes. Most retail traders who use high leverage lose money. Sparkling trading app shows the numbers; it does not recommend a leverage level, and nothing here is investment advice.
Trading a position larger than your margin, which magnifies both profit and loss.
Your position is twice your margin, so a 1% price move changes your margin by about 2%.
It depends on the country; several regions restrict leveraged crypto products for retail users.
The agent can suggest parameters, but you set the size and confirm the order.
Forced closing of a position when its margin falls below the maintenance level.
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