The ION Group guide says 10x leverage turns a 1% price move into a 10% change in a trader's position. It adds that leverage can make losses bigger than the initial investment. FINRA's investor guidance names volatility, low liquidity, scams and theft as further risks.
Key facts from the ION Group guide and FINRA
- Leverage example: With 10x leverage, a 1% price move changes the trader's position by 10%.
- Losses beyond stake: Leverage can produce losses above the initial investment.
- Total loss risk: The risk of losing all of an investment in crypto assets is significant.
- Scam transfers: Once crypto assets are sent in a scam, they are generally gone for good.
What a futures contract is
The ION Group guide defines a crypto futures contract as a binding deal between a buyer and a seller. Both sides agree to trade a specific crypto asset at an agreed price on a set future date. Settlement typically happens in a designated currency, such as USD.
How leverage changes a price move
The ION Group guide says leverage lets a trader open a larger position with less capital. Its example uses 10x leverage: a 1% price move changes the trader's position by 10%. The guide gives this as an example, not as a measured result. Set your own capital, leverage and price move in the calculator to see the effect on your position.
Leverage and a price move
Enter your own capital, leverage and price move to see the change in your position.
| Your own capital (the amount you put up) | Leverage | Price move | Change in position value |
|---|---|---|---|
| 1,000 USD | 10 x | 1 % | 100 USD |
| 5,000 USD | 10 x | 1 % | 500 USD |
| 250 USD | 10 x | 1 % | 25 USD |
- Capital is your own figure; the sources give none.
- Leverage of 10x and a 1% price move come from the ION Group guide's example.
The calculator leaves out fees, margin calls and liquidation, which the sources do not give figures for.
Margin: the balance you must keep
The ION Group guide says traders must keep a minimum balance, called margin, to hold their positions. Check the platform's own terms before opening a leveraged position. A separate explainer covers the difference between leverage and margin trading.
Volatility and liquidity
FINRA says crypto assets are risky and often extremely volatile. The risk of losing all of an investment in crypto is significant. They are also less liquid than stocks and bonds. That can make price swings worse. It can also make selling harder.
High risk and unsettled rules
The ION Group guide calls crypto derivatives high risk, with potential for large losses from leverage and market volatility. It adds that the regulatory environment for crypto derivatives is less established than for traditional ones, and more uncertain.
Analysis: how the risks combine
Read side by side, the sources suggest that leverage magnifies whatever price swing a crypto asset makes. FINRA says crypto assets are often extremely volatile. The 1% figure is the ION Group guide's example, not a measured move.
Scams and recovery
FINRA says bad actors use the public's interest in crypto to commit fraud. The schemes it lists include Ponzi schemes, pump and dump schemes, fake coins and phishing. Once crypto assets are sent in a scam, they are generally gone for good. Recovering stolen crypto assets is rare.
Theft and choosing a provider
FINRA says theft of crypto assets is a significant risk. Some providers may do a better job of protecting against cyber risks and theft than others. Investors should vet an institution carefully before using its service.
Stop-losses and hedging
The ION Group guide says a stop-loss order sells, or buys, an asset automatically once its price reaches a set level. That limits potential losses. Hedging helps limit potential losses. It may also reduce profit potential.
Analysis: what these tools cannot do
The sources treat stop-losses and hedging as ways to limit losses, not as ways to remove risk. FINRA's general investment guidance says you cannot eliminate investment risk.
Checks before trading
The ION Group guide says traders should be cautious and manage risk carefully. It adds that they should weigh market volatility and counterparty risk.
Next step and limits
Before you open a leveraged crypto futures position, vet the provider as FINRA advises, then read its margin, fee and liquidation terms. The sources do not give current futures figures, such as margin rates, fees, position limits or liquidation rules. The ION Group guide is dated Feb. 21, 2025, and the FINRA pages carry no publication date.
Sources: Crypto derivatives - A comprehensive guide (iongroup.com), accessed Oct 18, 2026 · Crypto Assets - Risks (finra.org), accessed Oct 18, 2026 · Risk (finra.org), accessed Oct 18, 2026
ZIPMEX promotes trading on trade.zipmex.com. Promotions are labelled and kept separate from news coverage, which is selected and checked without regard to them. Perpetual futures are leveraged derivatives. Prices can move fast and you can lose all of your margin. Not available in every jurisdiction. Not investment advice.
