At OKX, we prioritize the safety of your assets and long-term PnL (Profit and Loss). Since high leverage in copy trading carries significant risks, we recommend keeping copy trading leverage at 20x or lower to protect your assets and avoid potential losses.
Risks of High Leverage in Copy Trading
Our copy trading data shows that an increasing number of copy traders have faced liquidation due to excessively high leverage. Generally, higher leverage substantially increases the risk of liquidation and losing your margin.
Higher leverage = Higher liquidation risk = Higher margin loss
Historical data highlights the following primary risks of high leverage:
- Extreme Volatility: High leverage magnifies market fluctuations, potentially leading to much larger losses.
- Liquidation Risk: When the market moves unfavorably, high-leverage trades are far more likely to be liquidated, resulting in margin loss.
- Compounded Losses: Over time, high leverage can accumulate losses, negatively impacting long-term performance.
How to Reduce Your Leverage?
Option 1: Adjust Leverage When Opening a New Trade
- Navigate to Copy Trading > Market Board and select a trader to copy.
Click Copy Now > Advanced Settings > Contract Settings > Leverage.
- Note: Set leverage for all futures to 20x or below.
Option 2: Modify Leverage for Existing Trades
- Go to Copy Trading > Market Board.
- Select My Copies > My Traders > Edit > Advanced Settings > Futures Settings > Leverage.
Option 3: Manual Trading Page
Adjust leverage for individual futures on the manual trading page.
- Pro Tip: Use Isolated Margin to limit risk exposure.
Benefits of Low Copy Trading Leverage
✅ Risk Control: Lower leverage minimizes potential losses and shields your capital from market swings.
✅ Reduced Liquidation Risk: Less leverage means fewer liquidations, preserving your margin.
✅ Long-Term Profits: Sustainable investing with less stress over short-term market movements.
FAQ
Q1: Why is high leverage dangerous?
High leverage amplifies both gains and losses, increasing the likelihood of liquidation during market volatility.
Q2: What’s the safest leverage for beginners?
Stick to 10x–20x to balance opportunity and risk.
Q3: Can I change leverage mid-trade?
Yes! Follow Option 2 above to adjust existing positions.
👉 Explore OKX’s risk management tools
Final Tip: Always understand market risks and conditions before copy trading. Set appropriate leverage—never exceed 20x for long-term success.