# Margin & Leverage

Perpetual trading on Wick lets you control larger positions by using leverage.\
Understanding how margin works is critical to managing risk. All positions on Wick are Isolated, cross margin trading maybe available in the future.

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<details>

<summary>What is Leverage?</summary>

**Leverage** allows you to amplify your position size by borrowing funds.

* Example: With 10x leverage, a $100 margin deposit controls a $1,000 position.
* Higher leverage = higher potential profits *and* higher risks.

</details>

<details>

<summary>Isolated Margin</summary>

In **Isolated Margin**, margin is dedicated to a single position.

* Losses are limited to the margin assigned to that trade.
* Easier to control risk on a per-position basis.
* Risk: If liquidation happens, only the isolated margin is lost.

</details>

<details>

<summary>Funding Rates</summary>

Perps use **funding payments** to keep contract prices aligned with the spot market.

* If funding is **positive**, longs pay shorts.
* If funding is **negative**, shorts pay longs.
* Payments occur periodically while your position is open.

</details>

<details>

<summary>Liquidations</summary>

If your margin falls below the required maintenance level, your position may be **liquidated**.

* This happens automatically to protect the system.
* To reduce risk:
  * Use appropriate leverage.
  * Monitor positions regularly.
  * Set Stop Loss orders.

</details>


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